Cardano (ADA) Real Volume Suggests Downtrend Is Far From Over
28 April 2022 - 7:00PM
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Cardano (ADA) has been one of the worst-hit cryptocurrencies in the
market. The digital asset which had seen a high of $3.10 now lives
on past glory as it is now trading below the $1 mark. This has been
going on for a while which has convinced some investors that the
end of this onslaught is coming to an end. However, on-chain
metrics suggest that this is far from the case and in fact, the
downtrend is not close to ending anytime soon. On-Chain Metrics Are
Bad One thing that has always gone well for Cardano has been the
amount of activity that is recorded on the network. The
cryptocurrency which boasts a cult-like following has been one of
the best-performing networks in terms of activity and traffic. At
some point even rivaling, or surpassing, the leading smart contract
network, Ethereum, in terms of volume. But it seems this reign is
coming to an end as Cardano’s network activity has slowed
significantly. Related Reading | Small Cap Altcoins Take April
Shower, Will May Bring New Growth? At the beginning of the month,
Cardano’s real volume on a daily basis had surged as high as $750
million passing through the network in a day. However, as the price
of the digital asset has declined and investor sentiment has turned
negative, its real volume has taken a hit. ADA real volume on a
decline | Source: Messari Snoop Dogg’s NFT launch on the network
had helped to bolster activity on the network but this soon died
down. The result of this has been a constant decline in real
volume. At the time of this writing, the real volume for the
network is now sitting as low as $37 million on a daily basis. What
This Means For Cardano The price of any cryptocurrency in the space
can easily be linked to the network activity of that asset. This is
why the decline in the real volume for Cardano spells out more bad
news for the value of the digital asset. Related Reading
| Ethereum Attempts To Climb North; Is It Eyeing $3000? A
surge in this real volume has usually coincided with a surge in the
price of ADA. What this alludes to is that with real volume down,
with no signs of picking up soon, then there is not enough momentum
to trigger another recovery trend for the cryptocurrency. ADA falls
below $1 | Source: ADAUSD on TradingView.com Rather, as the real
volume continues to decline, it is expected that the price of the
digital asset will decline with it. This could see the value of ADA
testing at the $0.7 level in the month of May. Although this has
historically been a bullish month so there is a chance ADA will
recover if the market does. ADA is trading at $0.84 at the time of
writing. The digital asset is down 72.52% from its September 2,
2021, all-time high. Featured image from Zipmex, chart from
TradingView.com
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