Cardano (ADA): On-Chain Metrics Disclose Profit-Booking Spot for Holders

While the crypto community awaits the much-anticipated Vasil Hard fork, launching next month. The Cardano platform seems to have what it takes to keep its customers alert amid pessimistic market tendencies.

Cardano Anticipated Change

Cardano witnessed similar sensations shift in August last year when it launched smart contracts capabilities amidst the Alonzo hard fork. However, the sentiment rests as a theory as nothing technical remains.

This month’s crash left Cardano falling hard before a quick bounce. Though ADA exhibits bearishness around $0.51 at this publication, it did revive from its lows. For now, the alt explores a bearish territory that housed it for nearly four months September 2021 to January 2022.

The timeframe saw Cardano on extended losses. Nearly all daily ADA on-chain transactions carried losses. And Cardano hinted at similar actions early in March 2022. That was crucial to reflect ADA deterioration as the token declined in market value. Early sessions this month had this metric declining again, hitting 2-year lows.

Moreover, swift recovery possibilities remain almost impossible as most ADA holders witness losses. Also, the derivative metric shows investors losing interest in Cardano amidst current tendencies.

Futures contracts on all exchanges saw open interest on a significant fall. While publishing this content, the OI stood beyond $230 million, a substantial slump from January 2022 figures of above $700 million.

Market players appear uninterested in Futures betting regardless of the awaited Vasil fork, as open interest would have reflected higher puts and calls contracts. Therefore, Cardano enthusiasts can use this as a crucial indicator in predicting Cardano’s next moves and investors’ possible reactions amid hard fork arrival.

Meanwhile, ADA holders need to watch broad market tendencies. Bears remain in control of the cryptocurrency world. While publishing this content, the global crypto market paints a bearish picture. The cumulative value of all digital coins hovered around $1.25 trillion, following a 0.14% decline within the past day.

Also, Cardano shares a high correlation with Bitcoin. For now, BTC battles bearishness as it failed to overcome the $30,000 resistance. Bitcoin trades at $29,471.48 during this publication. ADA price will flourish amid a BTC jump past $30K.