Cardano Fights ‘Dead Coin’ Label: How AI Can Help Raise ADA

• ADA has seen fluctuations between positive and negative sentiments.
• Technical indicators indicate a decreasing selling pressure.

In recent months, Cardano [ADA] has faced criticism, with some labeling it a “dead coin” due to its price trends.

However, despite this negative story, ADA has maintained its position among the top digital assets.

Moreover, its potential in the Artificial Intelligence (AI) space could serve as a bullish catalyst, offering a promising future that defies current skepticism.

Cardano faces “dead coin” narrative

The story of ‘dead coins’ around Cardano has largely arisen due to its defiant price trend in recent years.

Analysis shows that although Cardano has experienced some price increases in recent months, it has consistently struggled to break into the $1 price range.

In addition, ADA has sometimes failed to match broader market trends, showing a muted response to macroeconomic events that typically affect other assets.

Cardano has maintained its position among the top ten digital assets despite these challenges. According to data from CoinMarketCap, ADA was ranked tenth at press time, with a market capitalization of more than $12 billion.

Hoskinson’s AI speech sparks interest

Cardano’s involvement in the Artificial Intelligence (AI) sector may inspire a bullish outlook among investors.

During a recent AI conference, Charles Hoskinson, the founder of Cardano, explored the convergence of blockchain technology and AI, highlighting the potential role of ADA in this growth.

This discussion has sparked interest in how ADA could integrate with AI, potentially boosting investor confidence in its future growth and relevance.

The growing enthusiasm for AI-related assets reinforces the bullish sentiment surrounding Cardano’s foray into the AI ​​space.

Recent developments have shown that assets like ICP and Worldcoin typically experience positive price movements in response to advances within the AI ​​sector.

Integrating AI capabilities could add a distinctive dimension to the ADA token, setting it apart from other altcoins. It could leverage the surge in interest to drive further growth and investor interest in its platform.

Cardano Shows Positive Movement Amid Dead Coin Talks

ADA was trading at around $0.3382 as of this writing, reflecting a positive move with a gain of over 4.06%.

Also, the Relative Strength Index (RSI) was around 42.25, placing it in the neutral zone but getting closer to the oversold region.

Additionally, the Moving Average Convergence Divergence (MACD) indicator was at 0.0000, with the signal line slightly below -0.0179.

The MACD histogram showed a mix of red and green bars, indicating declining momentum.

The combination of the RSI and MACD suggested that selling pressure may weaken. The trend hints at a potential price reversal if ADA can break above the 50-day (yellow line) moving average (MA).

Source: TradingView

However, if ADA continues to struggle below the moving averages, it could lead to further consolidation or a continuation of the current downtrend.

Key levels to watch include resistance at the 50-day MA and support around the current price level near $0.3204.

ADA’s Funding Rate fluctuates

An analysis of Cardano’s Funding Rate on Coinglass revealed that it has maintained an overall positive trend despite the ‘dead coin’ story.

However, the funding level has recently fluctuated between positive and negative zones.

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At this time it was at approximately -0.008%. This trend suggested that sellers dominate the market, indicating a prevailing bet on the price decline of ADA.

The fluctuation between positive and negative funding rates reflected a market in flux, with bearish sentiment currently gaining the upper hand.