Cardano price ‘seeing most bearishness’ as altcoins rebound

Cardano Rebounds Amid Market Pressure

Cardano (ADA) has experienced a 40% rebound from its monthly low of $0.3174, but still remains 45% below its highest point of the year. Despite being a leading cryptocurrency, Cardano has faced significant pressure, with its market capitalization plummeting from over $90 billion in 2021 to $15.9 billion at the time of writing.

Indicators suggest a decline in developer and investor interest. According to DeFi Llama, monthly developer commits have fallen to under 2,000 this month, compared to 3,380 in May and 3,300 in June.

Cardano's DeFi applications have also seen a decrease in total value locked (TVL), with ADA deposits declining from a record high of 633 million in December 2023 to 538 million currently. This TVL of $247 million is notably lower than newer blockchains.

Unlike other major cryptocurrencies, Cardano lacks the presence of a significant meme coin or decentralized exchange (DEX). Its largest DEX, Minswap, processed less than $1 million in transactions over the past 24 hours, compared to Solana's Raydium with $851 million.

Sentiment towards Cardano is waning, with daily volume remaining below $500 million since July 5th. Despite this, smaller meme coins are experiencing higher trading activity.

Data from Santiment reveals that trader interest has reached its lowest point in months, with concerns expressed over Cardano's underperformance and limited developer activity.

Additionally, Cardano's staking yield is among the lowest in the market, at less than 3%, according to StakingRewards.

Technically, Cardano remains below its 200-day moving average, indicating a potential vulnerability in its current recovery.

However, the crypto fear and greed index suggests a potential shift towards optimism, fueled by hopes of a Federal Reserve rate cut. If Bitcoin sustains its rally and surpasses its year-to-date high of $73,400, ADA price may follow suit.