Cardano’s fortune-telling has some tips for ADA sweethearts

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Grand promises on the left but an amateur hour on the right, this is a usual complaint most ADA holders have been having for over eight months now. It should be noted here that Cardano’s culture of over-promising and under-delivering speaks volumes for its price action.

In September 2021, ADA’s valuation looked totally divorced from its fundamentals. Even though the token achieved an all-time high, the project was much in its infancy. Despite the development narrative dominating the Cardano market, the token hasn’t been able to live up to its investors’ expectations.

It seems Cardano’s NFT projects have also been failing to aid its price action. Reportedly, 4.7 million native tokens have been issued on the Cardano network. In fact, 937 projects are being built on Cardano while the total number of NFT projects increased to 5,549. However, at the time of writing, ADA was trading at $0.5366, down by about 6.90% over the last seven days.

Following the UST crash’s ripple effect, ADA went to a low of $0.39- a level last seen in February 2021. Consequently, the token saw one of the biggest capitulation events. However, after 12 May, the bulls have been exerting pressure but the unimpressive volume might not see ADA cross its month-long resistance at $1.21. However, in case, if demand kicks in for a sustained period, ADA might see a rally to $1.613.

The indicators, at the moment, don’t seem to support any bullish thesis. RSI stood at the 36.58 mark for its latest session, not hinting at any trend reversal. Moreover, the price appeared to be on the lower side of the Bollinger Bands while the width of