While the world of crypto remains in flux, one altcoin that has been receiving mixed sentiments in recent times is Cardano (ADA). A majority of on-chain indicators suggest a bearish trend for ADA, despite a bullish signal from the Bid-Ask Volume Imbalance indicator.
According to data from IntoTheBlock, four key indicators paint a rather grim picture for ADA. These include the Concentration indicator, In the Money indicator, Net Network Growth indicator and Large Transactions indicator. When the concentration of ADA by large holders (known as "whales") decreases, it often implies a bearish trend as large holders sell off their holdings.
Similarly, when the In the Money indicator drops, it means a decreasing number of ADA addresses are profiting from their positions, suggesting a bearish sentiment.
The Net Network Growth indicator, which tracks the growth of new ADA addresses, has also been trending downward, indicating a decline in network growth and potential bearishness. Additionally, a decrease in the number of large transactions often implies a lack of interest from institutional investors, again hinting at a bearish trend.
However, ADA's Bid-Ask Volume Imbalance remains bullish, indicating that there may still be strong buying pressure. This indicator measures the difference between the volume of ADA on the buying side and the selling side of the order book. When this imbalance is positive, it suggests that there is a higher demand to buy ADA than sell, potentially driving up the price.
Despite this bullish indicator, Cardano's recent price performance tells a similar story to the bearish on-chain indicators. TradingView data shows that ADA's price has decreased by 7.30% over the past week and 9.68% over the past month. The current market capitalization stands at $12.75 billion with a 24-hour trading volume of $194 million.