On the one hand, cardanos Vasil hard fork has slowed down again. On the other hand, the original token ADA price has risen, further flipping Ripple’s XRP to become the 7th largest cryptocurrency in the world by market value. However, data speculates that ADA is approaching a steep correction.
According to ADA’s social volume stats from the on-chain and social metrics company Santiment – the price rally is justified given the high social sentiment as the chart indicates social recovery.
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 and concluded a potential bull run.
According to Saniment- Cardano’s price fell nearly 70% this year, further fueling negative social sentiment towards the crypto. Nevertheless, the company emphasized that the last time the crowd was this negative in January, “ADA recovered +24% in 5 days until sentiment turned positive again”.
Simply put, a negative reading only establishes that more holders will incur losses if they sell the cryptocurrency at the prevailing price. In light of this, it can be deciphered that an investor typically sells and buys at a profit during the dip, further determining that Cardano’s price was potentially in a prime position to make a hasty recovery as holders, particularly whales , were able to take advantage of the lower price levels to fill their bags. However, the latest statistics may speculate that Cardano’s price is facing back and forth volatility amid the ongoing FUD and hype on social media platforms.