As the cryptocurrency market continues to bleed, eminent projects like Cardano (ADA) are witnessing significant negative sentiment from the crypto community. Despite the phenomenal rise in negative sentiment, ADA is supported by bullish statistics.
According to the on-chain and social metrics company, Feeling – Cardano’s price has fallen nearly 70% this year, further fueling negative social sentiment towards crypto. Nevertheless, the company emphasized that the last time the crowd was this negative in January, “ADA rebounded +24% in 5 days until sentiment turned positive again”.
Furthermore, a simple social metric analysis of ADA deciphers that a negative value only establishes that more holders will incur losses if they sell the cryptocurrency at the prevailing price. In light of this, an investor typically sells for a profit and buys during the dip, further stipulating that: cardanos price could be in a prime position to recover quickly as holders, especially whales, take advantage of the lower price levels to line their pockets.
ADA To See Recovery After BTC Bulls?
After the rest of the crypto market, the dominant cryptocurrency, Bitcoin is also currently undervalued and oversold according to the analysis of Fidelity Investments’ global macro, Jurrien Timmer. Last month, the Fidelity executive explained on Twitter why he is optimistic about BTC. He referred to Bitcoin’s price-to-network ratio and pointed out that valuation is more important than price.
Using the P/E measure for BTC, Timmer emphasized that the BTC price is currently bleeding, but its actual valuation remains higher than the current price pattern. Timmer explained that the price of BTC is below the network curve, further confirming that the cryptocurrency is undervalued.
After this, Timmer claimed that BTC is also oversold, explaining his theory using Bitcoin’s dormant flowchart. The fidelity executive explained how BTC is oversold by comparing its value to the price of its spending behaviour. Timmer tweeted that the “chart shows how technically oversold Bitcoin is”, adding that the “quiescent current indicator is now at levels not seen since 2011”.