- Cardano Price Issues Post-Chang Fork
- Sell-the-news Phenomenon and Its Impact
- Prospects and Support Levels for Cardano
Cardano (ADA) is facing price difficulties following the recent Chang fork, due to overvaluation and investor mistrust.
Cardano Price Issues Post-Chang Fork
Cardano's price is experiencing difficulties due to overvaluation and a lack of investor trust, indicating a need for more time to recover following the recent Chang hard fork. The Cardano network's Network Value to Transaction (NVT) ratio has reached its highest level of the year at 6.43, suggesting potential upcoming problems. Overvaluation is generally considered a negative indicator, often leading to corrections or delays in expected market upswings.
Sell-the-news Phenomenon and Its Impact
Prominent investors, such as large-scale crypto holders, have shown minimal inclination to retain ADA, selling off significant amounts of their holdings totaling more than $326 million, around 15% of the total supply. This aligns with the 'sell-the-news' phenomenon, where investors capitalize on the hype surrounding significant events and then sell their investments after the event occurs, typically resulting in market corrections.
Prospects and Support Levels for Cardano
While the short-term prospects for Cardano's price are uncertain, there remains a possibility of future recovery. The altcoin has been trapped in a descending wedge formation for over four months, and it is unclear when this pattern will end. There is potential for Cardano's price to decrease further, potentially reaching a significant support level around $0.31, which has traditionally been an important point of price stability. If the price rebounds from this support level, it could facilitate a breakout from its current pattern, potentially resulting in a substantial increase of 47%.
The absence of improvement in overall market conditions and investor sentiment could undermine the optimistic-neutral view and prolong the anticipated surge of Cardano.
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