Cardano, just like most altcoins, suffered a dip, volatility, and decline in market price for most part of 2022. After making an entry price of $2.01 in January, the Cardano native token, ADA, dipped as low as $0.3124. 2022 has been an epic year for ADA blockchain, despite suffering from contagion volatility.
Cardano Price Reversal is Possible
Earlier, a cryptocurrency analyst revealed that the Cardano token might hop on a price reversal soon, with indicators on Santiment, a crypto market intelligence platform. According to the analyst on Santiment Tool, an in-depth analysis of the market metrics hint at a bull run for the Cardano token.
The crypto expert and analyst made a post on Santiment, where he revealed that technical analysis shows volume gaps in Cardano markets charts. He stated that the gaps were around the $0.11 to $0.22 price levels on the ADA/USDT trading pair on Binance.
“The volume gaps are the areas that traders did not get to test, and compulsorily all areas must be filled on the charts. To fill the gaps, the price returns to those areas (new money), and possibly a trend reversal may set in. The volume gap metrics need to be analyzed and monitored”.
Whales Offloading Tokens, Factors Triggering Price Bear
The Santiment analyst further alleged that the massive dump and reduced number of whales on the token were also factors causing the beat price trend. According to On-chain analytics, between May to November, whales with 100,000 to 1 Million Cardano dumped over 60% of their holdings.
Also, the token had mainly been under capitulation for the last few months. Holders were quick to dump their tokens, panic selling out of fear of further decline in price or additional loss.
A crypto intelligence platform, Santiment data revealed that Cardano remained a top investor choice despite all the bear price trends. In the market presently, Cardano is trading at $0.335, a 2% bear in the past 24 hours. Cardano may be staging a price recovery trend that will soar above the $0.3 price level. The token is doing well, and the current price dip is attributed to the FTX and Alameda Research saga.