- ADA’s promising 5% surge on January 1st quickly eroded in the face of subsequent market downturns.
- MACD and RSI indicators hint at a potential downward trend, challenging earlier positive sentiments.
- Despite the rollercoaster, Cardano’s funding rate initially stayed positive but witnessed a decline as prices dropped.
In the initial days of the new year, Cardano (ADA) has encountered a rollercoaster of price movements, leaving investors on the edge of their seats. The cryptocurrency commenced 2024 on a high note, witnessing a commendable surge of more than 5% on January 1st, propelling its value above $0.60. However, the enthusiasm was short-lived as ADA faced a swift downturn in the subsequent days.
The Current Landscape for ADA
A meticulous analysis of the daily timeline chart exposes a 2.9% loss on January 2nd, followed by a more substantial dip of approximately 8% on January 3rd. The dip on January 2nd was closely associated with the broader market’s recent downtrend. The Moving Average Convergence Divergence (MACD) consistently signaled a bearish trend below zero for ADA. Initially, the Relative Strength Index (RSI) maintained its position above the neutral line, but with the recent price slump, both RSI and MACD could potentially indicate a downward trajectory.
As of the latest update, the RSI has marginally fallen below the neutral line, while ADA reflects a modest 1.6% increase, trading around $0.56. The volume chart from crypto analytics firm Santiment reveals significant activity amid the price volatility. Around January 1st, the volume hovered around $400 million, surging past $1 billion on January 3rd.
Funding Rate Insights for ADA
Intriguingly, the volume trend might signify a notable surge in ADA sales over the last two days, suggesting a prevalent selling wave. This inference draws from the observed correlation between the cryptocurrency’s price direction and the escalating volume. Had the altcoin’s price risen alongside the volume, it could have indicated an accumulation trend. However, the funding rate analysis presents a contradictory picture.
Despite the price fluctuations, Cardano’s funding rate remained consistently positive, standing at approximately 0.07% on January 2nd, as per Coinglass. This indicated that most traders retained optimism regarding a potential price upswing despite the ongoing decline. Nevertheless, the substantial price drop had a noticeable impact on sentiment, leading to a decline in the funding rate to around 0.03% on January 3rd. As of the last update, the funding rate further dwindled to approximately 0.009%, implying a visible decrease in investor optimism, despite the prevailing positive atmosphere.
As Cardano continues to navigate these turbulent waters, investors are keenly observing whether the cryptocurrency will regain its positive momentum or if further challenges lie ahead.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.