Cardano: Why ADA seems to be ‘overlooked’ by traders


Cardano’s [ADA] weighted sentiment has remained negative despite the rally in the general altcoin market following the Securities and Exchange Commission’s (SEC) recent approval of a Bitcoin ETF.

In a recent post on X (formerly Twitter), on-chain data provider Santiment noted that while ADA “is overlooked,” the “sentiment toward top cap assets remain at extremely optimistic levels with spotlights on them following the ETF approvals.”

ADA’s weighted sentiment at press time was -0.29, pegged below the center line since 21st December.

Demand for ADA is low

Despite the poor sentiment, ADA has benefited from the altcoin market rally to log a 7% uptick in the past week, according to data from CoinMarketCap.

However, an assessment of the coin’s price movements on a daily chart showed that the rally had not been backed by any significant demand for ADA.

Suggesting a decline in ADA accumulation, the coin’s key momentum indicators have trended downward since the year began. This has shown that ADA traders have increasingly sold off their holdings rather than accumulate new coins.

At press time, ADA’s Relative Strength Index (RSI) was 51.52, while its Money Flow Index (MFI) was 48.93.

ADA’s price has witnessed a decline since the bears pushed out the bulls on 3rd January, as observed from readings on its Directional Movement Index (DMI).

On that day, the coin’s negative directional index (red) crossed above the positive directional index (green) and has since remained in that position.

This kind of crossover occurs when selling pressure exceeds buying momentum. It is seen as a significant marker of a change in sentiment from bullish to bearish.

Confirming the bearish trend, ADA’s Aroon Down Line (blue) has since risen to return a value of 64.29% at press time.

When an asset’s Aroon Down line is close to 100, it indicates that the downtrend is strong and that the most recent low was reached relatively recently.

Also, the coin’s MACD line below the zero level remained positioned below its trend line. A MACD value below zero indicates that the shorter-term moving average is below the longer-term moving average, suggesting a downward trend.

Source : AMBCrypto by Abiodun Oladokun / Jan 14, 2024 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.