It can be difficult to get your bearings and predict when the tide will flip next when some coins and tokens are swimming in crimson while others are still green. Here’s what the signs had to say about Cardano [ADA] to that end.
Bullish Signals On The Way
At the time of publication, ADA is trading at $0.511 with a fall of 6.62% over the last 24hrs. Cardano was one of the assets defying the trend during a week dominated by outflows, according to CoinShares’ latest Digital Asset Fund Flows weekly report.
However, an asset’s success is more than just its price and cash flows. Cardano’s development activities have been on the decline since the beginning of May, according to Santiment data. Despite significant improvement since the middle of the month, the metric is still well below its late-2021 highs.
Cardano’s price indicators, on the other hand, were more optimistic. The Bollinger Bands appeared to be shrinking, indicating that volatility may be decreasing. Furthermore, the Relative Volatility Index [RVI] was above 50, implying that future volatility could drive ADA’s price higher.
On the whole, even if ADA’s price was decreasing at the time of publication, this could be good news for bulls. However, keep in mind that, as indicated in CoinShares’ research, the overall sentiment is unfavorable.
What’s In For June ?
Finally, June could bring a very different assessment of ADA’s movements. With the Cardano community excitedly awaiting the Vasil hard fork that is currently scheduled for June 2022, some key metrics such as price, weighted sentiment, and development activity could see drastic changes – either upwards or downwards.
If the delivery of Alonzo in 2021 is any indicator, media coverage of Cardano updates could have an impact on investor sentiment.