Cardano [ADA] has experienced a significant decline in market capitalization, pushing the token to the 9th position on the list of the top 10 cryptocurrencies. While this might seem bearish, ADA could have a trick up its sleeve that could lead to a trend reversal.

Decline in Cardano's market capitalization An analysis of CoinMarketCap data has revealed that while several cryptocurrencies have seen remarkable growth last month, ADA has been somewhat lagging behind. This was evident as its price only increased by 6% over the past 30 days.

At the time of writing, Cardano was trading at $0.6328 with a market capitalization of over $22 billion, making it the 9th largest crypto.

The sluggish price movement has had adverse effects on its previously high market capitalization, suggesting that it could as well drop out of the top 10 cryptocurrencies by market capitalization. To better understand what to expect from the token, AMBCrypto then checked ADA's metrics.

Will Cardano soon witness a trend reversal? Although ADA's price movement hasn't been volatile, Cryptollica, a popular crypto analyst, recently tweeted about an interesting development. According to the tweet, Cardano's price was in a consolidation phase and was on the verge of breaking through a key resistance zone.

A similar trend was observed in 2020, after which the token's price reached a record high. We then looked into its on-chain metrics to better understand if history would repeat itself.

Our analysis of Santiment data revealed that network activity around Cardano was high, as its daily active addresses were elevated. Another bullish signal was its MVRV ratio, which slightly improved over the past seven days.

However, investors need to exercise caution as most market indicators appear bearish on the token. For example, the MACD displayed a clear bearish advantage in the market.

Cardano's Relative Strength Index (RSI) was also below the neutral mark, indicating that the token's value could decrease in the coming days.

Nevertheless, ADA's price bounced back after touching the lower limit of the Bollinger Bands, hinting at a possible bullish rally in the next few days.

While the Bollinger Bands suggest a bullish rally, market sentiment around the token has remained bearish. This is evident from the fact that Cardano's weighted sentiment entered the negative zone.

However, its social volume has remained high, reflecting its popularity in the crypto space.

Cardano's weighted sentiment has dropped.