Bitcoin dominance rose slowly over the past two months, from 46.7% in early April to 48.01% at the time of writing. Yet, the price of the king coin has dropped by 3.3% since then. This suggested that the altcoin market has experienced greater losses than BTC.
Therefore, altcoin investors could stand to lose heavily in the event of another move downward for Bitcoin. This threat is something that Cardano [ADA] investors must acknowledge. On the price charts, ADA bulls faced resistance near $0.38.
Over the past month, Cardano has traded within the $0.36 and $0.38 levels. On the daily timeframe, Cardano witnessed a bearish market structure after the bear’s forced prices were beneath the $0.38 mark in early May.
The RSI hovered around the neutral 50 mark at the time of writing. It has not spent a considerable amount of time below the 40 value in May, which showed that there was no strong downtrend in May, although momentum favored the sellers.
Taken together with the price action, the higher timeframe trend was bullish. The rallies in January and March were followed by pullbacks of 27% and 22%, respectively. Therefore, the consolidation above $0.36 could be part of a higher timeframe uptrend. However, bulls must be cautious until the $0.38-$0.4 resistance zone was broken.
The retracement in mid-April was accompanied by a surge in dormant circulation. However, the early March ones were close to the local bottom for Cardano on the higher timeframes. It was unclear which case it would be for Cardano.
The mean coin age saw a steep ascent earlier this month but stalled just two weeks later. This showed accumulation in early May, followed by a phase where neither buyers nor sellers had a clear superiority. The MVRV ratio suggested ADA was undervalued, and that holders were at a loss.