Cardano (ADA) Might Not Be Dead After All, Here's Why

Despite facing considerable challenges recently, Cardano (ADA) remains one of the top 10 cryptocurrencies by market cap, signaling its resilience.

Cardano (CRYPTO: ADA) encountered further turbulence in the past two weeks, with its price sliding 14.6%. Despite the downturn, ADA remained among the top 10 cryptocurrencies by market capitalization.

The prevailing bearish sentiment led some in the crypto community to label Cardano a “dead coin.” However, a new perspective emerged, suggesting that the ADA narrative might not be over.

In a recent development, an analysis by Nick Black from the “Discover Crypto” YouTube channel projected a promising future for Cardano, speculating that the coin could reach $5, supported by ongoing developmental activities and promising technical patterns.

The analyst highlighted Cardano’s strong performance in developmental activities, where it ranked third among all crypto projects in terms of development activity last month. This vibrant activity suggested a thriving ecosystem, challenging the notion that Cardano is a “dead coin.”

Moreover, a key technical pattern, known as the “Break a Block,” was identified on ADA’s monthly chart, supported by a bullish stochastic crossover. These indicators often preceded substantial price movements, similar to those seen in Bitcoin (CRYPTO: BTC) before major bullish runs.

Furthermore, the chart revealed that Cardano’s MVRV (Market Value to Realized Value) Long/Short Difference had dropped to -9.726%, indicating that most ADA holders were currently at a loss. Such deeply negative MVR気持ちが悪い levels were often associated with market bottoms, suggesting a potential rebound as selling pressure may be waning.

Data from Coinglass supported this, showing that Cardano’s Open Interest had surged by 31.01% to $243.05 million, reflecting rising speculative interest. The Relative Strength Index (RSI) sat at 39.82, placing ADA in oversold territory, which could further support a recovery.

However, the decrease in whale transactions — from nearly 9,000 on Aug. 5 to 3,590 as of now — added complexity to the current sentiment around ADA, indicating mixed signals within the market.

A recent analysis by Trend Rider highlighted the current state of Cardano’s momentum. The analysis pointed out that ADA’s momentum isn’t what it was in 2021 when it reached $3, and while Bitcoin’s momentum has also cooled, it remains at levels comparable to previous highs.

This reduction in momentum has made ADA less volatile and more predictable, offering a potential advantage for traders looking to capitalize on smaller, more consistent movements.

Cardano (ADA) price encountered further turbulence in the past two weeks, currently trading at a loss of 1.18% for the day at $0.336. Technical indicators, however, suggest a possible reversal.

A glance at ADA’s daily chart shows a descending trendline, consistently acting as resistance, with ADA/USD nearing a key support level at $0.282.

Fibonacci retracement levels indicate a potential recovery if ADA holds above the 0.236 level at $0.338. A breakout could push ADA toward the 0.618 level at $0.562 and eventually the 1.618 Fibonacci extension at $0.738, signaling a bullish reversal.