On one hand, Cardano’s Vasil hard fork has been delayed yet again. On the other hand, its native token ADA price has rallied, further flipping Ripple’s XRP to become the 7th largest cryptocurrency in the world by market value. However, data speculates that ADA is nearing a steep correction.
According to ADA’s social volume metrics from the on-chain and social metrics firm, Santiment — the price rally is justified given the high social sentiment, as the chart indicates social recovery.
Meanwhile, active addresses convey a contrasting narrative and may assert that social volume is high due to synthetic hype on community platforms. Given that ADA’s active addresses are still substantially low, while the social volume remains high, there are high chances of price correction.
Cardano Faces FUD And Hype Volatility
Earlier this month, when negative sentiment from the crypto community was prominent for Cardano, Watcher Guru analyzed Cardano’s social sentiment charts, concluding a potential bull run.
According to Santiment – Cardano’s price was down by nearly 70% this year, further triggering a negative social sentiment toward the crypto. Nevertheless, the firm highlighted that the last time the crowd was this negative in January, “ADA rebounded +24% in 5 days until sentiment turned positive again”.
Simplistically, a negative reading only ascertains that more holders will incur losses if they sold the cryptocurrency at the prevailing price. In light of this, it may be deciphered that an investor typically sells for profit and buys during the dip, further determining that Cardano’s price was potentially in a prime position to make a hasty recovery as holders, especially whales could take advantage of the lower price levels to fill their bags. However, the latest metrics may speculate that Cardano’s price is facing back and forth volatility amid the ongoing FUD and Hype on social media platforms.