Wednesday, February 21, 2024

Is Cardano (ADA) due for a bounce after the 7th consecutive monthly red candle?

Holders of cardano are nervous. They have reason to be nervous. Since September of last year cardano has been dong poorly against the US dollar. It is expected the even in Mar 2022 the downward trend will continue.

The support price for cardano is at $0.75. Going by current trends, this price is likely to be breached. This seems all the more likely since the RSI is showing a downward trend.

Cardano – The Downtrend

After cardano posted $3.12 ATH, ADA’s showing has consistently been poor. The $3.12 level was last seen during the launch of the Alonzo contract. After that, since September of last year it has always posted a lower price than the previous month.

Investors were expecting that the launch of Alonzo would attract people to ADA. More interest in ADA, it was thought, would help push up its price. But this did not happen.

Of the six DeFi projects on the cardano chain, only four are active. Even of these , SundaeSwap dominates with 72% activity.

Charles Hoskinson, the CEO of InputOutput, however, believes that price is not important. He said that prices do tend to be volatile. It was instead important to focus on development. However, investors tend to look at the price and they cannot be convinced otherwise.

Analysts have been unable to figure out the reason for the poor performance of ADA. They think that ISPOs could have a contributory effect to the low prices. They believe that ISPOs prompt people to sell ADA and this leads to low prices for ADA.

Analysts and investors are confident that the once the new DeFi projects have settled, cardano will also begin to do well.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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