Recent trends in Cardano's price have shown inconsistency in momentum and reduced trading volume has prompted concerns within the community.Though there is a slight uptick in active addresses, the impact remains uncertain. After a two-day decline, the recent upturn in Cardano (ADA) prices brings relief to its holders. Yet, questions arise about the sustainability of ADA's upward trajectory. While there is a faint positive indication, this positivity has yet to translate into significant price gains.

Cardano’s Latest Market Trends

The price movement of Cardano has been turbulent lately. A streak of three consecutive days of gains from May 1 to May 3 saw the price climb from around $0.45 to $0.46. However, these gains were short-lived as subsequent declines pushed the price back to approximately $0.45. The reversal following the positive trend hints at a lack of enduring momentum.

Currently, ADA is trading around the $0.45 mark, showing a slight 1% decline. With the Relative Strength Index just above 40, the prevailing bearish trend persists. Moreover, the price chart indicates a possible negative trend if ADA fails to sustain its current upward trajectory.

Market Concerns: Reduced Trading Activity

Recent observations highlight a dwindling trading volume concerning the Cardano (ADA) community. Volume analysis reveals a lack of vigorous momentum in the cryptocurrency. At the start of the month, ADA's trading volume surged above $400 million and briefly touched the $500 million milestone. However, a notable drop in volume ensued following this impressive surge.

As of today, ADA's trading volume sits at approximately $279 million. Given the recent fluctuations, this decline is a troubling development. Ideally, volume increases signify heightened trading activity and can influence price trends. Yet, the ongoing downtrend signals a reduction in market activities.

Encouraging Rise in Active Addresses

Cardano has witnessed a recent uptick in its seven-day active addresses metric. Data from Santiment reveals a rise from around 159,000 to over 163,000 between May 4 and the present.

Despite this increase, its impact on Cardano's network activities remains uncertain. The rise in active addresses does not directly correlate with transactional engagements on the network. This metric merely indicates addresses involved in Cardano transactions without providing insights into the nature of these transactions.