3 - 5 minute read
According to analytical platform Santiment, Cardano may be extremely undervalued compared to its competitors Ethereum and Solana. In a recent blog post, Santiment noted that there are signs that sellers of Cardano are becoming exhausted, as the number of coins at a loss on the network continues to decrease. The platform also pointed to a downtrend in trading volume as a potentially strong signal of a trend reversal.
However, Santiment cautioned that these indicators do not provide a fundamental insight into the future movement of Cardano. Despite this, the platform suggests that Cardano could see a recovery in 2023, particularly if the cryptocurrency market as a whole experiences a general recovery.
📊 Is #Cardano severely undervalued at this point? One of @santimentfeed's key community members certainly sees data making this case, such as sharks & whales (holding 100K to 10M $ADA) accumulating aggressively these past 6 weeks. Read the latest insight! https://t.co/TPskmWBsOH pic.twitter.com/HC0aEWIVns— Santiment (@santimentfeed) December 27, 2022
Cardano has struggled in recent years, failing to gain support from institutional investors and experiencing active selling that has driven its price down. The asset has not seen much redemption in 2023 and remains in a complicated state on the market.
While Cardano’s recent 7% price increase over the past four days may suggest a bounce is on the horizon, the asset has since dropped to a local low once again and has yet to gain momentum. The trading volume on Cardano is indeed descending, but this may simply be due to holidays on financial markets around the world, rather than a sign of a fading trend.
It remains to be seen whether Cardano will experience a recovery in 2023. Investors will be watching closely to see how the asset performs in the coming months.