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Cardano has become the darling of the crypto industry after beating BTC in the brand intimacy contest. ADA’s price is near a key support at $0.42. What can be the next move for the assets?
Last updated Aug 30, 2022 at 5:54 PM
Posted Aug 30, 2022 at 4:00 PM
We will explore what can happen if the major support of the asset breaks. Let’s delve into the current market scenario.
Cardano’s Current Situation
Cardano is one of the most promising projects, currently holding the 8th position in the crypto market based on market capitalization. ADA price is exchanging hands around major support with a little change from its price yesterday. Data from CoinMarketCap shows that ADA is more than 85% down from its all-time high in September 2021. The asset’s performance over the last couple of weeks hasn’t been very good: ADA has lost more than 21% in this period.
The Cardano ecosystem is receiving a lot of good news and developments from the market. Cardano has won the title of the darling of the crypto market as it has beaten the flagship currency, BTC, in brand intimacy. What will be the impact of this news in this context? Will the price of the asset change or not?
We will get to the technical part once we have covered the fundamental analysis of the Cardano ecosystem. Let’s get going!
The Cardano ecosystem is having the dream day of its life in the market. Cardano's treasury balance has already surpassed 1 billion ADA, or roughly $437 million at the current currency rate, according to Daniel Ribar of IOG's Project Catalyst's Community/Product division.
The Treasury's objective is to use a voting method to distribute money to promote Cardano's development. To ensure that money is always available requires a procedure where money is routinely remitted to the Treasury. To give the community more authority to shape Cardano's development and provide a financial mechanism to make Cardano into a self-funded, self-sustaining ecosystem, the Voltaire Era of Cardano introduced decentralized voting and treasury mechanisms.
Given that more projects are relying on Cardano, there have been substantial advancements in recent months. Ninety-three projects have just been launched on Cardano, while 1,075 projects are currently under construction on the platform. Plutus scripts currently number 3,117, whereas Cardano native tokens currently stand at 5.9 million with 60,468 minting policies.
Tim Harrison, vice president of IOG's community and ecosystem, claims "The block producing node statistic for Cardano SPOs is now at 58% for the epoch thus far and is at 76% on an hourly basis. Excellent trajectory. Developers of DApps and exchanges are also hard at work. We're approaching it."
Let’s look at the technical side to predict where the asset might be heading.
The next significant price move impending is the support level for Cardano (ADA). ADA is moving sideways and has a marginally optimistic outlook. Prices have challenged the numerous support levels near $0.42, and we anticipate a quick rebound to come shortly. A rise toward $0.50 in ADA/USD is possible given the current buying vigor.
The bears have benefited from the recent market structure. However, there has been a wider price recovery in the most recent trading week. The leading cryptocurrency, Bitcoin, increased by 1.24%, and Ethereum increased by 1.55%.
Support at the current price of Cardano indicates a potential accumulation close to the lower levels. The price is now suffering at a crucial point where any directional change may result in dramatic swing changes. ADA moved into a rising channel from its July 13 low of $0.40. To reach the swing highs of $0.59, the price increased by about 50%. On August 17, the price tested the channel's lower trend line. However, the price fell to multi-month lows in just three days when bulls gave up their gains, revealing a powerful selling drive.
The analysis will be nullified if any major news comes to the market. Currently, the ADA price is in recovery and can make a significant move ahead. Do your own research!