Reasons why Cardano [ADA] can soon beat the bears in the market

• In the last 24 hours, the price of ADA has been declining.

• Because market indicators were bullish, a trend reversal was possible.

Cardano’s [ADA] developer, Input Output Global (IOG), recently announced the launch of its proof-of-concept EVM sidechain public testnet for developers to begin testing.

With this latest release, developers will be able to connect their wallets, transfer test tokens, and deploy Solidity smart contracts and DApps.

Aside from the launch of the EVM sidechain public testnet, IOG also announced that its Plutus Pioneer Program will begin on February 20.

The new programme will include new features and content, as well as a simpler development setup. These new and upcoming launches appeared to be promising for the Cardano ecosystem, as they offered an architecture that could significantly contribute to the network’s value.

ICYMI: The proof of concept #EVM sidechain public testnet is now available for developers to begin testing. Connect your wallet, transfer test tokens, deploy Solidity smart contracts and DApps, play around, & have fun!

See the documentation to get started https://t.co/3yKHgIorwA pic.twitter.com/pAnpcJ8wvZ

— Input Output (@InputOutputHK) February 16, 2023

How did the Valentine’s Day upgrade go?

Aside from the previously mentioned announcements, Cardano recently released its long-awaited Valentine upgrade.

Following the launch, the price of ADA increased by more than 10% on a weekly basis. At the time of writing, ADA was trading at $0.3936, with a market capitalization of more than $13.6 billion, according to CoinMarketCap.

The bullish sentiment has shifted in the last 24 hours, as ADA’s daily chart has turned red. A look at ADA’s on-chain metrics uncovered a few factors that could have contributed to the recent downtrend.

For example, following the Valentine upgrade, ADA’s development activity decreased, which was a negative indicator. Its MVRV ratio has also decreased. 

Furthermore, ADA’s weighted sentiments were negative. As a result, the market’s bearish sentiment is reflected. ADA’s Binance funding rate fell in recent days as well, but it was able to regain demand from the derivatives market, which was a positive update.

The coming days can bring better news

Though the last 24 hours were not in investors’ best interests, several market indicators suggest that the coming days may bring good news.

The MACD indicated that a bullish crossover was possible. Aside from that, ADA’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) both registered minor increases and were trending higher, which was bullish.

The Exponential Moving Average (EMA) Ribbon remained bullish, with the 20-day EMA significantly higher than the 55-day EMA.