Cardano Social Sentiments Hits Highest Bullish Level in 4 Months, Will Prices Follow?

Social sentiments around the Cardano ecosystem have reached exceptionally bullish levels amid speculations about the network’s role in the United States.

Cardano and XRP remain the only assets named in the US crypto strategic reserve on March 2 that have some gains from the announcement in the tanks. ADA saw the most bullish reaction on the day, surging over 53%, compared to lighter upsides from the other four assets.

Despite pulling back considerably from the high of $1.175, the asset remains above the lows of $0.645, which it consolidated around prior to the announcement. Meanwhile, other bullish developments around the Cardano ecosystem have turned earlier skepticism into positive sentiments.

Social Crowd Sentiments Turns Positive

Before now, Cardano was among the most despised blue-chip assets in the crypto ecosystem. Founder Charles Hoskinson and analyst Ali Martinez identified this negative sentiment around ADA price, with the former bemoaning that the misconception has reached epic levels.

However, the tides have changed with recent bullish price actions and growing relevance in the space. Data from the market intelligence platform Santiment identified the growing positive sentiments around ADA on social media.

In a commentary today, the resource noted that there are 3.5 positive comments on social media per one negative remark on ADA, the highest since the first week of November. Santiment suggested that the recent speculations of Cardano’s role in the US government have aided this enthusiasm.

For perspective, speculations made the rounds over the weekend that the US Securities and Exchange Commission (SEC) has revealed the roles of specific blockchains in the US pro-crypto government. The alleged release noted, among other things, that Cardano would serve as the smart contract network for government services.

Notably, these speculations remain unconfirmed at the time of writing.

Will Prices Follow?

Meanwhile, research shows that social sentiments around an underlying asset indirectly impact prices. A positive community disposition attracts more investors, fueling demand. Furthermore, some market participants use hypes around digital currencies to make investment decisions.

Solana’s steep decline as social sentiments turned sour exemplifies how the community disposition can affect an asset. The asset relinquished its earlier gains this month and has corrected 14% since the meme coin fallout spread skepticism around the Solana ecosystem.

Moreover, analysts remain upbeat about an imminent bullish Cardano price action, with recent positive sentiments emerging as a possible catalyst. One such bullish disposition comes from commentator CryptoELITES, who predicted a 12x surge in ADA’s price, citing a breakout from a bullish cup-and-handle pattern.

At the time of writing, Cardano trades at $0.711, up 1.28% in the past 24 hours.