Cardano’s price to fall by more than 13%. What to expect in coming days?

Today, Cardano (ADA) made headlines for two contrasting reasons.

Firstly, it showcased its noteworthy development achievements in March.

However, it also garnered attention for negative reasons, as ADA experienced a 13% decline in value due to the recent market crash.

An analysis conducted by AMBCrypto, utilizing Santiment's data, revealed that Cardano's development efforts remained consistently high. This was evident from the steady rise in development activity throughout March, as depicted in the dev activity chart.

Input Output, the developer behind Cardano, shared their progress in a detailed thread on Twitter (X), highlighting the strides made by the team during the final month of Q1. Notably, they released Cardano node v.8.9.0, which introduced Genesis Lite bootstrap peers and addressed a bug to enhance overall performance.

In pursuit of scalability improvements, the Mithril team also released Mithril distribution 2408.0.

This update incorporated enhancements to stake distribution and other crucial aspects.

The report further mentioned that the total number of transactions involving ADA increased by 2.3 million over the course of March. Additionally, three new projects were launched on the Cardano blockchain during the same month.

Despite a slight decline in price compared to the beginning of March, with ADA's value falling to $0.64, April brought further disappointment for investors.

Within a 24-hour period, the token's price dropped by nearly 13%.

At the time of writing, ADA was trading at $0.5071, with a market capitalization exceeding $18 billion.

This positioned ADA as the 10th largest cryptocurrency according to Coinmarketcap. 

Unfortunately, various metrics suggested the possibility of ADA's price continuing to decline throughout April, as bearish signals dominated.

Our analysis of Santiment's data unveiled a sharp drop in Cardano's MVRV ratio, currently standing at -18%.

Furthermore, sentiment surrounding ADA turned bearish, evidenced by the decline in its weighted sentiment on April 12.

Additionally, the token's NVT ratio experienced a significant spike, indicating overvaluation and implying a potential future price decrease.

To further assess the likelihood of a price decline, we examined Cardano's daily chart and analyzed various indicators.

ADA's MACD displayed a clear bearish trend, favoring sellers in the market. Furthermore, the Chaikin Money Flow (CMF) exhibited a sharp decline on April 12.

Both of these technical indicators provided further support for the potential decrease in ADA's value in the days to come.