Cardano price to rally as selling pressure plummets
|- Cardano price is the worst-performing top ten market cap cryptocurrency by several on-chain metrics.
- Extremely bearish on-chain records combined with extreme oversold technical conditions create massive buying opportunities.
- Significant spike coming up for ADA.
Cardano price is one of the worst-performing altcoins in almost a year and one of the single most bearish performing cryptocurrencies out of the top ten by market capitalization. However, these bearish readings are, surprisingly, massively bullish.
Cardano price set for an explosive return to $1 and beyond
Cardano price action, when interpreted from an on-chain perspective, is equal to more bearish than it is on a Japanese candlesticks chart. The In & Out of the Money data set shows how badly Cardano hodlers are in the loss category.
Source: intotheblock.com, In & Out of the Money (Global)
In & Out of the Money (Global) measures the number of addresses in profit, are breaking even, or are at a loss. For Cardano price, over 80% of addresses are Out of the Money - in other words, eight of ten people who bought Cardano are currently in the red. That’s an insane percentage.
The percentage of Cardano addresses Out of the Money is at an all-time low. And just like metrics used in technical analysis, a series of different measurements showing an instrument is at or near all-time lows can help identify a bottom.
On the Cardano price monthly chart, the Composite Index hit a new all-time low for February and has maintained a value near that low for March. Additionally, Cardano is currently on track to complete a record seven consecutive months lower.
ADA/USD Monthly Ichimoku Kinko Hyo Chart
However, major warning signs indicate that this downtrend is likely to terminate and terminate very violently. The result of the historical all-time lows in the Composite Index, compared against prior swing lows, shows that price action has made new higher lows, but the Composite Index has created lower lows. This is a condition known as hidden bullish divergence - a warning that the current downtrend will end soon.
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