Cardano has been basking in a lot of glory lately, with the team celebrating several notable developments over the last couple of months. Just recently, the latest Shelley friends and family [F&F] Testnet release on 11 May was touted by many as a significant milestone for the Cardano ecosystem. Further, over the past three months, Cardano’s developer activity figures on GitHub had nearly 270 repositories, out of which five were found to be highly active.
Despite the growing number of market participants, however, Cardano’s social volume has low. A glance at the charts would reveal that Cardano has been seemingly overshadowed by the social volumes of Ethereum, a speculation shared by crypto-analytics platform, Santiment.
Source: Santiment
Here, it should be noted that the social volumes did witness a spike in the last week of April, soon after which the coin hit a local top. This trend, however, seems to have ground to a halt. Santiment’s tweet read,
“ADA is quietly creeping up as a hot altcoin as of late. It has moved +5.4% in the past 24 hours, and +12.8% in the past week. In spite of this, Cardano’s mentions have remained low as most of the attention has been on other alts like ETH and OMG.”
The disappointing social volumes were backed by Cardano’s Net Network Growth momentum signal, a metric that highlighted the coin’s underlying network health and found that the same was in the bearish region. On the price front, Cardano maintained a consistent upward trend as it headed closer to its yearly highs in an attempt to recover its losses. However, strong resistance on the charts might stop ADA from embarking on another rally.
Further, IntoTheBlock’s ‘In/Out of the Money Around Price’ [IOMAP] model noted that 2,680 addresses purchased 2.6 billion ADA between the price range of $0.0561 and $0.0573. This resistance area could stall Cardano’s upward price movement.
Not all hope is lost, however. Despite strong resistance, investors’ confidence was also noted to be on a rise. At the time of writing, out of all the Cardano addresses, 72.22% were ‘In the Money,’ while 26.18% were ‘Out of the Money.’ This suggested that ADA’s investors anticipate a bullish price action. Additionally, 4,140 addresses bought 2.77 billion ADA between $0.0525 and $0.0537. This means that this price level would act as strong support, if the coin’s price were to decline.
Source: IntoTheBlock
