- ADA was down by more than 18% in the last seven days.
- There was a chance of a trend reversal as Cardano’s Open Interest dropped along with its price.
2024 began on a good note for Cardano [ADA], at least on the development front, as a key metric surged by triple digits. However, this could not help ADA overcome the wrath of the bears.
At press time, ADA’s daily and weekly charts were both painted red.
Cardano’s development surged by 250%
On the 7th of January, Cardano Feed posted a tweet that highlighted the blockchain’s massive achievement. As per the tweet, Cardano’s development activity increased by nearly 250% over the last 30 days.
Cardano Surges Nearly 250% In Development Activity, Whale Buying Appetite – Details | Crypto Breaking News #Cardano #cardanofeed #trading #ADA #crypto #CardanoCommunity #bitcoin #blockchain @otaviolima #cryptocurrency #CardanoADA #btc $ADA https://t.co/tiJaI73LeQ
— Cardano Feed ($ADA) (@CardanoFeed) January 6, 2024
AMBCrypto then examined Santiment’s data to find what was going on with the blockchain. Our analysis revealed that ADA’s Development Activity spiked substantially in the last week.
Alongside this, the token’s Dev. Activity Contributor count increased quite a few times last week. High Development Activity is generally considered to be a positive sign, as it reflects the efforts made by developers to improve a blockchain.
Source: Santiment
ADA isn’t benefiting from this
Despite the massive hike in Cardano’s Development Activity, its native token’s price action remained under bears’ influence. According to CoinMarketCap, ADA was down by more than 18% in the last seven days.
In fact, in the last 24 hours alone, the token value dropped by 8%.
At the time of writing, ADA was trading at $0.4854 with a market capitalization of over $17 billion, making it the eighth-largest crypto.
A possible reason behind the price drop could be ADA’s dropping MVRV ratio. Not only that, but bearish sentiment around the token also remained dominant in the market, as evident from the dip in its Weighted Sentiment.
Nonetheless, whale activity around the token remained high as its whale transaction count graph was up.
Source: Santiment
Is your portfolio green? Check out the ADA Profit Calculator
Though Cardano’s press time price action looked bearish, things might take a U-turn soon. Notably, ADA’s Open Interest dropped along with its price. Whenever Open Interest drops, it increases the chances of a trend reversal.
Its Funding Rate also declined in the recent past, meaning that derivatives investors were not buying ADA at its low price at the time of the report.
Source: Coinglass
