Cardano sees highest positive sentiment in 2024 despite 47% slump in five months

Cardano records a resurgence of bullish sentiments despite persistently underperforming in comparison to the broader market.

This uptick in sentiment is particularly notable given the broader market context. The crypto market is showing signs of recovery, with Bitcoin (BTC) reclaiming the $61,000 price mark, which has bolstered optimism across major cryptocurrencies. 

Despite recently dropping out of the top 10 list of largest assets, Cardano (ADA) is one of the biggest beneficiaries of this optimism. Per Santiment, Cardano’s weighted sentiment score is at an impressive 1.69, surpassing other major assets like BTC and Ethereum (ETH).

📊 Crypto is showing signs of recovery, with Bitcoin rebounding to as high as $61.3K today. The crowd sentiment has been flipping more and more bullish for most top caps since the August 5th bottom, and BTC +19% since that fear-causing crash. 👍 pic.twitter.com/giuRmtgX5o

— Santiment (@santimentfeed) August 20, 2024

Data confirms that Cardano’s current bullish sentiments represent the highest level in 2024. The increased sentiments come at a time when ADA is shouldering a significant 47% slump over the past five months. 

The rise in positive sentiment around Cardano despite its continued price struggles represents a contrast in market trends. However, the optimism could be linked to the upcoming Chang hard fork, which would introduce Voltaire, Cardano’s last era, and a shift in governance.

Nonetheless, it appears the market has yet to translate this optimism into significant price recovery, leaving ADA still hovering at one of its lowest points in recent months.

In contrast, other assets like Bitcoin and Binance Coin (BNB) have shown more direct correlations between sentiment and price movement. Bitcoin, with a sentiment score of 0.54, has managed to sustain its recovery above $61,000, while BNB, with a sentiment of 0.77, is up 9% over the past week.

Meanwhile, Cardano is trading at $0.3438, up 2.1% this morning. The asset currently faces stiff resistance at $0.3872. Above this level, further roadblocks lie at $0.4409 and $0.4741. On the downside, Cardano has strong support at $0.3336 and $0.3004, which could act as a cushion if the price retraces.

The Aroon indicator, which tracks the strength of the trend, shows that Aroon Up is at 35.71%, indicating a moderate uptrend. However, Aroon Down is at 0.00%, suggesting that there is little downward momentum at present.