- ADA has seen fluctuations between positive and negative sentiments.
- Technical indicators indicated a declining selling pressure.
In recent months, Cardano [ADA] has faced criticism, with some labeling it a “dead coin” due to its price trends.
However, despite this negative narrative, ADA has maintained its position among the top digital assets.
Moreover, its potential in the Artificial Intelligence (AI) space could serve as a bullish catalyst, offering a promising future that counteracts the current skepticism.
Cardano faces “dead coin” narrative
The “dead coin” narrative surrounding Cardano has emerged largely due to its challenging price trend over the past few years.
Analysis reveals that while Cardano experienced some price surges in recent months, it has consistently struggled to break into the $1 price range.
Additionally, ADA has sometimes failed to align with broader market trends, showing a muted response to macroeconomic events that typically influence other assets.
Cardano has maintained its position among the top ten digital assets despite these challenges. According to data from CoinMarketCap, ADA was ranked tenth at press time, with a market capitalization exceeding $12 billion.
Hoskinson’s AI speech sparks interest
Cardano’s involvement in the Artificial Intelligence (AI) sector may inspire a bullish outlook among investors.
During a recent AI conference, Charles Hoskinson, the founder of Cardano, explored the convergence of blockchain technology and AI, highlighting ADA’s potential role in this growth.
This discussion has piqued interest in how ADA could integrate with AI, potentially boosting investor confidence in its future growth and relevance.
The growing enthusiasm for AI-related assets enhances the bullish sentiment surrounding Cardano’s foray into the AI space.
Recent developments have shown that assets like ICP and Worldcoin typically experience positive price movements in response to advancements within the AI sector.
Integrating AI capabilities could add a distinctive dimension to the ADA token, setting it apart from other altcoins. It could leverage the surge in interest to foster further growth and investor interest in its platform.
Cardano shows positive movement amid dead coin talks
ADA was trading at approximately $0.3382 as of this writing, reflecting a positive movement with a gain of over 4.06%.
Also, the Relative Strength Index (RSI) was around 42.25, placing it in the neutral zone but edging closer to the oversold region.
Additionally, the Moving Average Convergence Divergence (MACD) indicator stood at 0.0000, with the signal line slightly below -0.0179.
The MACD histogram displayed a mix of red and green bars, indicating diminishing momentum.
The combination of the RSI and MACD suggested that selling pressure might be weakening. The trend hinted at a potential price reversal if ADA can break above the 50-day (yellow line) moving average (MA).
Source: TradingView
However, if ADA continues to struggle below the moving averages, it may lead to further consolidation or a continuation of the current downtrend.
Key levels to watch include the resistance at the 50-day MA and support around the current price level near $0.3204.
ADA’s Funding Rate fluctuates
An analysis of Cardano’s Funding Rate on Coinglass revealed that it has maintained a generally positive trend despite the “dead coin” narrative.
However, the Funding Rate has recently fluctuated between positive and negative zones.
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As of this writing, it stood at approximately -0.008%. This trend suggested that sellers dominate the market, indicating a prevailing bet on ADA’s price decline.
The fluctuation between positive and negative Funding Rates reflected a market in flux, with bearish sentiment currently gaining the upper hand.
