Cardano Dominates Race for Best Layer-1 Network Award, but ADA’s Market Performance Raises Concerns

Cardano Dominates Race for Best Layer-1 Network Award, but ADA’s Market Performance Raises Concerns

Crypto News – Cardano [ADA] has emerged as the frontrunner in the race for the prestigious best layer-1 (L1) network award, slated for the Blockchain Life Forum in Dubai.

With an impressive tally of 2,015 votes on the event’s official voting portal, Cardano commands a significant lead over industry giants like Ethereum [ETH] and Solana [SOL], which have garnered just 484 and 161 votes respectively, at the time of this report.

The public voting phase will persist for another ten days, after which the chain with the highest votes will clinch victory.

A prominent figure within the Cardano community expressed that winning this accolade would provide a substantial visibility boost to the ecosystem and its native token ADA, which is much needed given the current market sentiment.

However, ADA’s recent performance paints a different picture.

While other leading cryptocurrencies have experienced notable gains in recent weeks, ADA, the ninth-largest crypto, has recorded a loss of 3.41%, according to data from CoinMarketCap. Furthermore, its year-to-date (YTD) gains stand at a modest 6.6%.

Analysis of Santiment’s data reveals a decline in the percentage of ADA’s total supply in profit, dropping from 82% to 76% over the past fortnight. This trend has not gone unnoticed by large holders, colloquially known as whales, as evidenced by a notable decrease in the number of wallets holding between 1,000 to 100,000 ADA coins, indicating selling pressure.

The pressing question arises: will ADA’s downward trajectory persist?

Technical indicators analyzed by AMBCrypto shed light on potential future moves. The Relative Strength Index (RSI) hovers below the neutral 50 line, with past breaches of this level proving unsuccessful. A breach past 60 could instill confidence among bullish traders.

However, the On Balance Volume (OBV) illustrates a negative divergence with price action, suggesting a potential loss of upward momentum in the near future.

Additionally, the Moving Average Convergence Divergence (MACD) teeters on the brink of falling below the signal line in forthcoming trading sessions, posing the risk of further downward movement for ADA.

In conclusion, while Cardano celebrates its lead in the race for the best layer-1 network award, concerns loom over ADA’s market performance, prompting a cautious outlook among investors and analysts alike.