Cardano has recently experienced a resurgence of bullish sentiments amidst a recovering crypto market, despite its persistent underperformance in comparison to other major cryptocurrencies. This uptick in optimism comes at a time when the broader market is showing signs of recovery, with Bitcoin reclaiming the $61,000 price mark.
According to Santiment, Cardano’s weighted sentiment score is currently at an impressive 1.69, surpassing other major assets like BTC and Ethereum. This marks a significant increase in positive sentiment for Cardano, with the current levels being the highest in 2024. Despite Cardano’s recent 47% price slump over the past five months, the increased optimistic sentiment around the project is noteworthy.
One possible reason for the surge in positive sentiment around Cardano could be attributed to the upcoming Chang hard fork, which is set to introduce Voltaire, Cardano’s last era, and a shift in governance. However, despite the optimism surrounding Cardano, the market has so far failed to translate this positive sentiment into significant price recovery, with ADA still trading at one of its lowest points in recent months.
In contrast to Cardano, assets like Bitcoin and Binance Coin have shown more direct correlations between sentiment and price movement. Bitcoin, with a sentiment score of 0.54, has been able to sustain its recovery above $61,000, while BNB, with a sentiment of 0.77, has surged 9% over the past week. On the other hand, Cardano is currently trading at $0.3438, showing a modest 2.1% increase this morning.
Cardano is currently facing significant resistance at $0.3872, with further obstacles at $0.4409 and $0.4741. On the downside, the asset has strong support levels at $0.3336 and $0.3004, which could potentially act as a cushion in case of a price retracement. The Aroon indicator, which tracks trend strength, indicates a moderate uptrend with Aroon Up at 35.71%, while Aroon Down remains at 0.00%, suggesting limited downward momentum at present.
Overall, while Cardano’s bullish sentiments are on the rise, the project still faces challenges in converting this optimism into tangible price gains. As the crypto market continues to recover, it will be interesting to see how Cardano performs in the coming weeks and whether it can break through its current resistance levels to reach new highs.
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