- Despite the development activity, Cardano’s network activity remained high.
- A few metrics and market indicators turned bullish.
Cardano [ADA] had a tough week as the price plummeted by double digits. While this price drop can be mainly attributed to the bearish market conditions, some other factors may also have played a role.
Read from Cardano [ADA] Price prediction 2023-24
One of those factors could be a decline in blockchain development activity, which could have fueled negative sentiment.
Dig deep into Cardano’s weekly gig
Santiment’s chart revealed that blockchain development activity has fallen over the past week. The reason behind this was revealed by ADA‘s weekly development report. The report highlighted the work of multiple Cardano teams.
However, no major updates were pushed last week, which may have been the cause of the drop in the stat.
Source: Sentiment
Nevertheless, the report mentioned the updated network statistics of the blockchain. For example, Cardano’s total native tokens reached 8.7 million and the total number of transactions surpassed 73 million.
There are A total of 137 projects have been launched on the blockchain, while more than 1270 are currently building the network.
What is going on #Cardano? 💫
Check out this week’s development update at #EssentialCardano and stay on top of the latest developments in core technology, portfolios and services, smart contracts, scaling, governance and more. 👇https://t.co/GAzbEl2jkf
— Input Output (@InputOutputHK) August 18, 2023
Still interesting ADAdevelopment activity declined, network activity remained high. This was evident from the stable number of daily active addresses.
ADA’s transaction volume also remained relatively high. However, the speed slowed, resulting in ADA being used more often in transactions within a given time frame.
Source: Sentiment
ADA’s card turns red
The recent market trend has kept the prices of most cryptos from rising. Like others, the price of ADA also fell significantly. From CoinMarketCapADA fell more than 10% in the past seven days.
At the time of writing, it was trading at $0.2639 with a market cap of $9.2 billion.
The price drop caused an increase in negative sentiment around the token in the market. Cardano’s popularity also declined as social volume declined. However, the bearish price trend could end soon as ADA Open Interest has fallen over the past few days.
In addition, the Binance funding rate was also red, suggesting that the ongoing price trend could change.
Source: Sentiment
Realistic or not, here it is ADA’s market cap in terms of BTC
In fact, ADA’s daily chart had already turned green when the price rose marginally. Cardano’s Money Flow Index (MFI) supported the possibility of a trend reversal as it registered an uptick. However, the rest of the indicators were still bearish.
ADA‘s MACD showed a bearish upper hand in the market. In addition, the Chaikin Money Flow (CMF) fell from neutral, which looked worrying.
Source: TradingView