Cardano‘s market valuation returned to the $6 billion mark after dropping below it earlier. At the time of writing, Cardano’s market cap was exactly $6 billion, according to CoinMarketCap data, while ADA price traded at $0.165.
The cryptocurrency market saw a slight rebound after U.S. inflation data came in as expected on Wednesday, reinforcing the view that the Federal Reserve might keep interest rates steady at its June 17 meeting but is likely to increase rates by the end of the year.
The Consumer Price Index year over year rose 4.2% in May, according to a report from the Bureau of Labor Statistics. Economists had expected a rise of 4.2% following the April 3.8% increase.
Bulls face real test
Cardano bulls face a real test as derivatives positioning and funding rates in the market point to growing bearish sentiment and increased short bets.
An imminent death cross on the weekly chart adds to the gloomy outlook, with Cardano trading near lows last seen in December 2020. However, two key on-chain signals serve as a flicker of hope amid the ongoing negativity.
According to Santiment, Cardano’s on-chain age metrics showed unusual behavior over the past several days. ADA’s Mean Dollar Invested Age, which tracks the average age of capital sitting in ADA wallets, is steadily climbing as dormant wallets make large moves.
In addition, Cardano‘s Age Consumed indicator has seen significant spikes over the last few days, including its largest surge since April. Santiment noted that these two metrics indicate that dormant ADA that had been sitting untouched for long periods is moving again.
Santiment noted these signals might not automatically imply a reversal is imminent, but they do indicate that something has changed beneath the surface. Historically, increases in ‘clusters of Age Consumed’ coupled with a pause or drop in Mean Dollar Invested Age have often appeared around key market turning points.
In a separate tweet, Santiment noted that major crypto assets are seeing 2-year low trading volumes, signaling capitulation needed to create a crypto relief rally.
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