Bitcoin and altcoins experienced strong selling pressure last week following the consecutive news from the SEC regarding spot Bitcoin ETF applications on Thursday.
While BTC fell to the $ 26,000 level, altcoins also retreated. Despite this pullback, Santiment said Cardano (ADA) is showing signs of recovery.
Santiment pointed out that despite the sales pressures, ADA's weekly on-chain transaction volumes have increased by 1,700% since the end of January.
Santiment also pointed out that Cardano social dominance has increased and stated that this increase shows that investors' interest in ADA remains unchanged.
“Cardano is still seeing an increase in on-chain transaction volumes despite subdued market capitalization compared to its April local peak.
In this context, while ADA is showing signs of recovery, this recovery plays a significant role in any rebound, and this, coupled with the increasing ADA social dominance, is still bullish for ADA. “
? .@Cardano is still seeing rising #onchain transaction volume despite its suppressed market value compared to its April local top. Utility plays an important role in any bounce, and this combined with adequate $ADA social dominance, is still promising. https://t.co/EbGxIN8wFd pic.twitter.com/Y9SRtbXLFq
— Santiment (@santimentfeed) September 4, 2023
Throughout 2023, Cardano will range from $0.25 to $0.46, trading near the lower bound of $0.25 at the time of writing.
Cardano also took a hit from the SEC in 2023. Because the SEC stated that ADA is also a security in the lawsuits it filed against the leading cryptocurrency exchanges Binance and Coinbase.
Time will tell if the signs of recovery expressed by Santiment will bring about a sustainable recovery that will lead to Cardano's ATH of around $3.
*This is not investment advice.