On-chain data gives compelling reasons why Cardano is trading at a substantially discounted price. In a blog post on Monday, Santiment argues that ADA has grown, but the price hasn’t kept pace in 2022. Does this mean the token will moon in 2023?
Metrics Point To ADA Being Underpriced
Cardano is dramatically undervalued compared to Ethereum, Solana, and other top competitors.
Blockchain analytics firm Santiment published a blog post highlighting some signals that ADA sellers are slowly getting exhausted. There are fewer coins at a loss on the blockchain on every ADA price downswing, meaning the selling power is continually declining.
Another reason to be optimistic is the decreasing trading volumes. This is typically one of the strongest trend reversal signals in crypto markets. As this trend continues, the bears or bulls gradually lose their grip leading to a trend reversal. Such a scenario could be witnessed for ADA in 2023, especially if the broader crypto market is recovering. Santiment analysts believe ADA’s price will “increase in value” based on the aforementioned indicators, though it’s not guaranteed.
Is ADA Bullish Or Nah?
It’s been quite a rough year for markets, and crypto hasn’t been spared in the fallout.
The near-term outlook for Cardano looks bleak. Despite Santiment suggesting the coin is trading far below its actual value.
ADA cryptocurrency is down 2.59% in the last 24 hours, currently trading at $0.2514. At its peak in September 2021, it traded at $3.09, according to crypto data aggregator CoinGecko.
Even as new entrants join the market and sharks accumulate, the global macro environment, dwindling investor confidence, and recent price action hint that there’s no apparent reason for the ADA narrative to flip bullish anytime soon.