Despite Cardano persistently underperforming in comparison to the broader market, there has been a resurgence of bullish sentiments surrounding the cryptocurrency. This optimism comes at a time when the crypto market, in general, is showing signs of recovery. Bitcoin has managed to reclaim the $61,000 price mark, which has led to increased optimism across major cryptocurrencies.
According to Santiment, Cardano’s weighted sentiment score is currently at an impressive 1.69, surpassing other major assets like Bitcoin and Ethereum. This marks the highest level of positive sentiments for Cardano in 2024. The increased optimism surrounding Cardano is notable, especially considering the 47% slump the asset has experienced over the past five months.
The rise in positive sentiment around Cardano, despite its price struggles, contrasts with market trends. The upcoming Chang hard fork, which will introduce Cardano’s last era, Voltaire, and a shift in governance, may be driving this optimism. However, the market has yet to translate this positive sentiment into significant price recovery, as ADA continues to hover at one of its lowest points in recent months.
Price Analysis
While assets like Bitcoin and Binance Coin have shown direct correlations between sentiment and price movement, Cardano is still facing challenges. Trading at $0.3438, Cardano is up 2.1% but is currently encountering stiff resistance at $0.3872. Further roadblocks are expected at $0.4409 and $0.4741. However, strong support levels at $0.3336 and $0.3004 could act as a cushion if the price retraces.
The Aroon indicator, which tracks trend strength, shows a moderate uptrend for Cardano. Aroon Up is at 35.71%, indicating some upward momentum. However, Aroon Down is at 0.00%, suggesting minimal downward pressure at the moment.
While there is a resurgence of bullish sentiments surrounding Cardano, the cryptocurrency still faces challenges in translating this optimism into significant price recovery. The upcoming Chang hard fork could play a crucial role in determining Cardano’s future price movements, but for now, the asset remains underperforming compared to its counterparts in the market.
