Tag: Negative

Cardano’s development began over a decade ago, but the actual launch took a couple of years. The release of smart contracts, a crucial development, followed in 2021 after the widely discussed Alonzo upgrade.

Its native token has garnered favor among many cryptocurrency investors, but it also faces significant skepticism and criticism.

Analyst Questions Valuation

Satoshi Flipper, a prominent figure on Crypto X with over 240,000 followers, shared another analyst’s perspective on the Charles Hoskinson-founded network, posing the question, “Is Cardano the most overvalued blockchain on the planet?”

The analysis questioned the blockchain’s performance, citing a DeFi total value locked (TVL) of just $128 million, according to DeFiLlama at the time of publication, along with a 24-hour DEX trading volume of $1.3 million, $26 million in stablecoins, and approximately 17,000 active addresses.

Eye Zen Hour described this as an “incredibly small on-chain economy relative to valuation.” Cardano’s native token has a market capitalization of $9 billion, which, despite a significant decline from its peak, still ranks it among the top 15 altcoins by that metric.

Consequently, Zen Hour concluded that the market will eventually have to decide on Cardano and ADA, whether it is valuing an ecosystem or “just a memory from prior cycles.”

Price Performance and Decline

The Alonzo upgrade coincided with ADA’s most significant price surge in the third quarter of 2021. At the time, the token, along with the broader market, reached a new all-time high of just over $3. However, it turned out to be a classic “sell-the-news” event, and ADA has struggled to regain its previous value.

During the 2025 market-wide rally, Bitcoin and many altcoins achieved new peaks, but ADA’s high fell far short of its 2021 record, failing to surpass $1.3. It currently trades below $0.25, representing a staggering decline of over 92% since its 2021 all-time high.

While nearly all crypto assets have declined since last October, ADA’s drop has been more than just a correction, and being 92% away from its record does not bode well for its large community.

Bitcoin Struggles Below Key Level

Bitcoin has been trading below the cost basis of a key investor group for the past week, according to on-chain data. The world’s largest cryptocurrency could face further headwinds if it fails to reclaim this critical level.

Short-Term Holders Face Losses

Crypto analyst Axel Adler Jr. noted on X on May 22 that Bitcoin is struggling to surpass its Short-Term Holder (STH) Realized Price, which he identifies as approximately $80,217. The STH Realized Price represents the average acquisition price of newer Bitcoin investors. When Bitcoin trades below this level, many short-term holders are holding unrealized losses, which can increase selling pressure.

Adler pointed out that realized losses have increased across the Bitcoin market. Net realized profit is now roughly -$176 million, stemming from $366 million in realized losses and $190 million in realized profits among Bitcoin short-term traders. Adler suggests that until Bitcoin surpasses the STH cost basis, any market rebounds may be temporary. These price recoveries below $80,217 could be relief rallies rather than indicators of a broader trend reversal. For Bitcoin to demonstrate bullish momentum, the price must decisively break above the former STH support, which may now act as resistance. As the price approaches the STH breakeven price, investors are more likely to sell, adding to bearish pressure.

Coinbase Sees Increased Selling Pressure

In another X post, Maartunn revealed that Coinbase is experiencing significant bearish pressure, the strongest since February. The Coinbase Premium Gap, which tracks buying and selling activity among US-based investors, has dropped into negative territory, coinciding with Bitcoin’s recent price decline. A positive premium typically indicates stronger buying activity on Coinbase, while a negative reading suggests increased selling pressure or weakening demand from US investors.

Historically, strong negative Coinbase premium readings have coincided with corrective phases or periods of short-term fear. However, they can also precede the establishment of local bottoms if selling exhaustion begins to emerge.

As of the time of writing, Bitcoin is valued at $75,514, down 2.56% in the last day.

Bitcoin Price May Not Have Bottomed, According to Analyst

Crypto analyst Chain Mind suggests that Bitcoin’s price has not yet reached its lowest point, citing historical data. The analyst pointed out that Bitcoin has never bottomed without touching the Exponential Moving Average (EMA) 300.

In a post on X, Chain Mind indicated that a bottom is unlikely without first touching the EMA300. He noted that in 2020 and 2022, Bitcoin touched the weekly EMA300 before the cycle low. Specifically, Bitcoin’s bottom came 10% below the EMA in 2020 and 15% in 2022.

The analyst noted that in the current cycle, Bitcoin bounced from $60,000 without reaching the EMA, implying the true bottom is yet to come. He added that if the pattern repeats, Bitcoin could drop to around $58,000, potentially marking the final bottom of this bear cycle.

In another X post, the analyst indicated that Bitcoin’s price action is mirroring the 2022 bear market. He noted that Bitcoin had just rejected the 200MA, a move that also occurred in 2022. This confirms the bearish macro structure after Bitcoin tagged the 200D MA again at $82,000. If the 2022 pattern repeats, the leading cryptocurrency could drop 40% to 60% from the rejection point, suggesting a cycle bottom in the $50,000 to $55,000 range.

Bitcoin is currently in a downtrend after failing to hold above the $80,000 level. This decline is occurring amid bearish factors such as the US-Iran war, rising inflation, and expectations of a Federal Reserve rate hike this year. Bitcoin’s latest drop followed the Securities and Exchange Commission’s (SEC) delay in approving tokenized stocks.

Analyst Remains Bullish Despite Market Sentiment

Crypto analyst Kaleo stated that the overall plan for Bitcoin remains unchanged, despite traders on Kalshi betting against a rally to $100,000 this year. He encouraged market participants to adopt a more bullish outlook.

Kaleo predicts a retest in the lower $70,000 range, followed by a rebound to between $80,000 and $90,000, and a period of consolidation during the summer. Subsequently, the analyst anticipates Bitcoin will rally above $100,000 and reach a new all-time high (ATH) in the fall and winter. The CLARITY Act’s potential passage could trigger a significant rally for the leading cryptocurrency.

As of the time of writing, Bitcoin is trading around $75,400, down over 2% in the last 24 hours, according to data from CoinMarketCap.

It was less than ten days ago that the popular cross-border token XRP challenged the $1.55 resistance level. However, the subsequent rejection was swift and significant.

The past 24 hours have exacerbated the retracement. While the broader market is down today, with Bitcoin (BTC) falling to $75,000 for the first time in three weeks, XRP’s decline has been more pronounced.

Currently trading at $1.33, XRP has experienced a 14% drop from its recent peak, according to the 10-day chart. Furthermore, XRP has reached its lowest price since April 13, marking a six-week low. Its market capitalization has decreased to approximately $82 billion, widening the gap with Binance Coin (BNB) to over $5 billion as of the time of this report.

Whale Activity Declines

Of greater concern is the decrease in whale activity on the XRP network. According to analyst Ali Martinez, large transactions exceeding $1 million have fallen from 157 a few months ago to 67 today, a 57.3% decrease. This suggests that the underlying asset could be entering a “compression phase.”

Whales appear to have reduced their activity, allowing “the current price range to settle, which naturally reduces immediate volatility and allows the order books to mature.”

Mixed Signals

On a more positive note, XRP saw a surge of 4,300 new wallet creations in a single day earlier this week, the fourth-largest spike in network activity in 2026. According to Santiment, such network growth is a strong indicator of potential market reversals.

Bearish Outlook

Analyzing XRP’s recent price movements, analyst CRYPTOWZRD warned of a bearish close for the token, predicting further declines, particularly if BTC continues to fall.

CRYPTOWZRD also noted an “increasing trend in short positions” for XRP and cautioned that there are “no reversal signals in the futures market yet.” In a separate post, the analyst suggested that the cross-border altcoin could fall further to $1.30.

A crypto market analyst has issued a warning about Ethereum (ETH), predicting a significant price correction that could see the cryptocurrency fall to as low as $800, or even $400 per coin. While such a drop would represent a substantial decline from ETH’s current price, the analyst argues that it is necessary for a market reset, allowing prices to reflect genuine demand and establish sustainable support levels.

Analyst Says Ethereum Crash Is Critical For A Market Reset

Rafaela Rigo, a crypto market analyst, shared an Ethereum price analysis on X that has garnered attention from traders and investors. Rigo presented a chart analysis from 2024 in which she accurately forecast a price drop to $1,900 after Ethereum reached a bull run peak. That same analysis also predicted a decline to $800, a level the analyst identified as a “great buying opportunity.”

Rigo has updated her 2024 chart analysis to predict Ethereum’s next move. She forecasts that ETH’s price could crash to $800 during the ongoing bear market. With the cryptocurrency currently trading above $2,100, a drop to that level would represent a loss of over 61%.

Taking a more bearish view, Rigo stated that a further price drop to $400 is possible for Ethereum, particularly if the cryptocurrency cannot halt its bearish momentum. If ETH falls to this level, it would reach a historic low, returning the second-largest cryptocurrency to levels not seen since 2019.

Rigo noted that she previously described the 2024 cycle as catabolic and expects the current cycle to follow a similar pattern. She added that while a drop to $800 would be painful, it is necessary for a proper market reset. The analyst emphasized that the crypto market urgently needs this reset to eliminate the problematic projects entering the space. She also noted that many of these new crypto projects are pump-and-dump schemes that have negatively impacted sentiment and caused many investors to leave the market.

Rigo described her forecast as a “macro price prediction,” clarifying that the predicted events will take time to unfold. She urges investors and traders to remain vigilant, monitor market movements carefully, and avoid emotional trading.

Analyst Predicts Ugly Price Crash For ETH Soon

Market expert Ted Pillows has also shared an Ethereum price analysis, expressing caution about the cryptocurrency’s recent price action and a Bear Flag formation. Pillows warned that this Bear Flag could have significant negative consequences for ETH’s price.

At the time of writing, the cryptocurrency is trading above $2,100 following weeks of bearish pressure and volatility. Despite this resilience, Pillows cautioned that if ETH fails to hold above $2,100, “things could get ugly.” He predicted a potential price crash down to $1,960, representing a decline of more than 6% from current levels.

Ethereum Sentiment Plummets Amidst Price Stagnation

As Ethereum (ETH) struggles to break through key resistance levels, the altcoin appears to be experiencing a significant shift in investor sentiment, with recent data indicating a transition from patience to frustration among traders.

Sentiment Takes a Hit

According to data from the analytics firm Santiment, Ethereum has suffered a decline not only in market value but also in the number of “patient holders” over the past few months. The cryptocurrency’s sentiment has plummeted as its price remains under pressure. Since early April, ETH has been trading between $2,200 and $2,400, repeatedly attempting to break out of this range. Following another failed breakout earlier this month, ETH has declined by 11.5%, potentially risking a drop below $2,000 for the first time since March.

Amidst this decline, Ethereum’s social dominance has continued to climb, raising concerns about trader sentiment. Santiment noted that while rising social dominance is typically a positive sign during periods of strong bullish momentum, ETH’s social discussion volume surged after the April 17 local top and continued as the altcoin’s price fell. “This is often what happens when traders become emotionally locked onto an asset for negative reasons rather than optimistic ones. Instead of excitement about new highs, the conversation shifted toward frustration, disappointment, and fear of further downside,” the firm stated.

Furthermore, the ratio between bullish and bearish comments on Ethereum has collapsed since April, falling from a relatively healthy 2:1 ratio, where bullish comments outnumbered bearish ones, to roughly 1:1. This indicates that positive sentiment has largely faded, and negative views now match positive ones. Santiment stated that this deterioration has historically occurred when traders lose confidence in short-term direction. In Ethereum’s case, the sentiment collapse wasn’t triggered by a single catastrophic event but rather by “several negative narratives piling up simultaneously over a relatively short period of time.”

Factors Driving Negative Sentiment

Santiment identified several factors contributing to the negative sentiment surrounding Ethereum, starting with the cryptocurrency’s performance. ETH has struggled to regain its leading role from previous cycles, with more traders viewing it as “dead money” compared to assets with stronger momentum this year.

The performance of Ethereum ETFs has also intensified concerns, as retail traders often interpret large withdrawals as evidence that institutions are “abandoning” the asset. “That creates a psychological feedback loop where falling prices generate fear, fear causes outflows, and then those outflows generate even more fear. Ethereum’s bearish sentiment has increasingly reflected this cycle throughout the month,” the firm explained.

Moreover, reports of multiple departures from the Ethereum Foundation, prominent ETH advocates distancing themselves from the ecosystem, and major ETH figures allegedly reducing or exiting their holdings have amplified the negativity. At the same time, Ethereum has faced criticism related to competition from faster-growing ecosystems, with retail traders focusing less on developer strength and more on short-term price acceleration. On-chain activity has also weakened compared to previous ETH rallies, with fewer new wallets interacting with the network and overall participation slowing alongside price momentum.

Potential for a Contrarian Reversal

Despite the growing bearishness, Santiment suggested that ETH’s negative sentiment “may eventually become constructive from a contrarian perspective” as markets historically punish the crowd “when consensus becomes too one-sided.” The firm concluded that Ethereum is reaching a point where social media discussion has become overwhelmingly negative, which, from a behavioral standpoint, is “often what forms near major turning points.”