The cryptocurrency market presented a surprise bearish action that sent ADA to explore its new lows of 2022. That came as enthusiasts though ADA couldn’t possibly dip further. Meanwhile, the latest drop saw Cardano dropping 45% from the April peak.
ADA could not dodge the recent downside wave as it was among the most bearish tokens since September 2021. Previous, ADA presents signals of a possible rebound from foothold near its 2022 lows, created on February 24.
The alt witnessed a significant consolidation around the $0.75 value area since April 30. ADA even recorded a notable rally on May 4 but could not attain enough upside momentum before the May 5 pullback.
The absence of buying strength to back more increases welcomed capitulation, triggering a break beneath the vital support floor. ADA plummeted to $0.66 before attempting upside moves. While writing these lines, Cardano traded at $0.6947, exhibiting bearish tendencies.
For now, ADA hovers around the oversold territory, though haven’t dipped into the zone despite the pessimistic performance.
The token can drop further amid failure to secure impressive buying momentum to trigger an upside. Its MFI (Money Flow Indicator) indicators show inflows and outflows canceling out, thus the lateral moves.
On-Chain Activity Front
On metrics, ADA’s 30-day MVRV stands at -19.16%, meaning most holders remain in the red. Cardano’s age consumed metric hardly shows any activity within the past couple of days. Nevertheless, the tokens supply distribution reveals a fascinating tale.
Crypto accounts holding over 1 million tokens noted a surge since May 6, whereas those with 100,000 to 1 million Cardano coins recorded declining balances.
That can show accumulating activities by whales. Nevertheless, the increase might mean inflows to exchange wallets. For now, Cardano remains at massive discounts from the asset’s historical top.
However, the alt still makes notable moves and attains significant milestones. That makes ADA a lucrative token for the upcoming bullish rally.
For now, bears control the crypto space. While publishing this content, the global cryptocurrency market cap stood at $1.49 trillion, following a 2.65% drop over the previous day. The pessimistic mood in the marketplace supports ADA’s bearish thesis.