Cardano (ADA) has been struggling to recover on its chart in the past week, with the bulls unable to sustain an upward movement. In the last 24 hours, ADA dipped close to 9%, and in the previous week, it registered a loss of 1%. At the moment, ADA is moving closer to its previous low due to the bleak demand for the altcoin. The technical outlook of ADA is pointing towards the bears gathering strength, and the buying strength of the altcoin has declined considerably ever since ADA attempted to move upwards on the chart.
The crypto sector has been facing a lot of pressure due to the inability of Bitcoin to break above the $24,500 mark. Consequently, many altcoins have suffered on their respective charts in the last week. As the demand fell, so did the accumulation. ADA could drop even further to $0.30 before the price increases over the following trading sessions.
If Bitcoin price starts to recuperate over the next few trading sessions, ADA might move close to $0.33 and trade within a range before attempting to break out of the field. However, there are some vital price levels that ADA must cross to increase in price.
Overhead resistance for the altcoin was at $0.33 and then at $0.35. These two levels above will act as critical price levels for ADA. The coin remains near $0.35 if it can shoot past the $0.36 mark. The amount of ADA traded in the last session declined, displaying selling strength.
Traders have lost confidence in the asset, and ADA registered a fall in buying strength as the coin depreciated further. The Relative Strength Index (RSI) was below the half-line, with a downtick signifying a fall in purchasing power on the one-day chart. In accordance with the same, Cardano was below the 20-Simple Moving Average line (red), indicating that the price was in the sellers’ control. The sellers were driving the price momentum in the market.
Despite the fall in price, ADA depicts buy signals on the one-day chart. The Moving Average Convergence Divergence (MACD) indicates price momentum and trend reversal. The indicator formed green signal bars, which are tied to buy signals.
These signals could mean that prices fall over the next trading session and recover in the subsequent trading sessions. The Directional Movement Index (DMI) demonstrates the price direction and strength of the same. DMI was negative as the -DI (orange) line was above the +DI (blue) line. The Average Directional Movement was sloping downward, which meant the current price trend was losing strength.
If Cardano trades above the $0.30 mark, the coin could propel to $0.34, and if it remains near $0.35, it can shoot past the $0.36 mark. These are crucial price levels that ADA must cross to increase in price. The coin may experience ups and downs over the next few trading sessions and may even dip to $0.30 before it moves upwards.
The cryptocurrency sector had a rollercoaster ride in the past year, with many altcoins struggling to make a positive impact. Cardano was one of the altcoins that managed to register a considerable increase in price. At the beginning of 2021, ADA was being traded for $0.18, and it reached a high of $1.49 in May 2021 before dipping again. Even though it has faced a lot of selling pressure in recent weeks, Cardano remains one of the most promising cryptocurrencies due to its unique technology and innovation.
Cardano’s unique proof-of-stake algorithm, Ouroboros, ensures that the network remains secure and decentralized. The algorithm splits the network into epochs, and during each epoch, a new slot leader is elected. The slot leader is tasked with the responsibility of verifying transactions on the network and adding them to the blockchain. The algorithm ensures that no single entity can control the network, and the network remains protected against malicious attacks.
Furthermore, Cardano’s development team is continuously working on improving the network’s capabilities. The team recently launched the Alonzo hard fork, which introduced smart contract capabilities to the network. The addition of smart contracts means that developers can build decentralized applications (DApps) on the Cardano network. This move is expected to open up new use cases for the network and attract more developers to build on the platform.
Cardano’s native token, ADA, is also being used for various purposes, such as staking, payment, and governance. Users can stake their ADA tokens to participate in network validation and earn rewards. The network’s governance system allows ADA holders to vote on proposals to improve the network and allocate funds to the development team. The use cases of ADA make it a versatile cryptocurrency and increase its demand in the market.
In conclusion, Cardano is a promising cryptocurrency that has faced some selling pressure in recent weeks. Despite the dip in price, Cardano’s unique technology, development team, and use cases make it a cryptocurrency to watch out for. The coin may experience ups and downs over the next few trading sessions, but its long-term potential cannot be ignored. If Cardano manages to cross the critical price levels mentioned above, it could register a considerable increase in price.