Cardano sees highest positive sentiment in 2024 despite 47% slump in five months

Cardano is noting a revival of its bullish trend despite consistently underperforming compared to the broader market.

This spike in sentiment is particularly notable given the broader market context. The crypto market is showing signs of recovery, with Bitcoin (BTC) reclaiming the $61,000 price mark, reinforcing optimism among major cryptocurrencies.

Despite recently falling out of the top 10 list of major assets, Cardano (ADA) is one of the biggest beneficiaries of this optimism. According to Santiment, Cardano’s weighted sentiment score stands at an impressive 1.69, outperforming other major assets like BTC and Ethereum (ETH).

📊 The cryptocurrency is showing signs of recovery, with Bitcoin rallying to as high as $61.3K today. The crowd sentiment has turned increasingly bullish for most top-tier companies since the August 5 bottom, with BTC up 19% since that fearsome crash. 👍 pic.twitter.com/giuRmtgX5o

— Santiment (@santimentfeed) August 20, 2024

Data confirms that Cardano’s current bullish sentiments represent the highest level in 2024. The heightened sentiments come at a time when ADA has experienced a significant 47% drop in the past five months.

The increasing positive sentiment is a contrast to market trends despite Cardano’s continued price struggles. However, the optimism can be attributed to the upcoming Chang hard fork that will introduce Voltaire, Cardano’s final era, and a change in management.

However, it appears that the market has yet to translate this optimism into a significant price recovery, with ADA still trading at one of its lowest levels in recent months.

In contrast, other assets like Bitcoin and Binance Coin (BNB) have shown more direct correlations between sentiment and price action. Bitcoin, with a sentiment score of 0.54, has managed to extend its recovery above $61,000, while BNB, with a sentiment score of 0.77, is up 9% over the past week.

ADA 1D chart – August 20 | Source: crypto.news

Meanwhile, Cardano is trading at $0.3438, up 2.1% this morning. The asset is currently facing stiff resistance at $0.3872. Above this level, there are more hurdles at $0.4409 and $0.4741. On the downside, Cardano has strong support at $0.3336 and $0.3004, which could act as a buffer if the price pulls back.

The Aroon indicator, which tracks trend strength, shows that the Aroon Up is at 35.71%, indicating a moderate uptrend. However, the Aroon Down is at 0.00%, indicating that there is currently very little downside momentum.