Cardano's ADA Battles Market Bears as SNEK Gains Momentum

On August 15, Cardano’s (ADA) price confirmed its downtrend by breaching a critical support level. This occurred despite active community efforts to boost their unofficial on-chain memecoin, SNEK. While memecoins have proven instrumental in the growth of major networks like Ethereum, Solana, and Ton, Cardano’s ADA has struggled to maintain momentum. Consequently, bears have seized control of one of the support levels, increasing the likelihood of a further decline in ADA’s price.

Community’s Positive Initiatives

The Cardano community remains undeterred by the downtrend, with significant efforts focused on promoting the SNEK memecoin. SNEK has rapidly gained traction as a growing asset within the community. In a short span, the community successfully raised 2 million ADA, roughly $645,026, to promote SNEK at the Las Vegas Sphere for an entire week. This level of commitment has fueled hopes that SNEK’s success could potentially lift ADA’s price back to previous highs.

Additionally, the Cardano ecosystem received a boost from the Europe-based real asset tokenization platform, Finest. This platform has chosen the Cardano mainnet to begin its operations, aiming to tokenize assets such as commodities, stocks, and bonds. The initiative from Finest could draw in new investors to ADA, potentially benefiting its long-term price trajectory. Therefore, while the short-term outlook remains bearish, these developments offer a glimmer of hope for Cardano’s future.

ADA’s Continuing Downtrend

Despite these positive initiatives, ADA continues to trade in a long-term downtrend. It remains below the 21, 50, and 200-day Exponential Moving Averages (EMAs), signaling ongoing bearish sentiment. The altcoin’s price recently broke through the initial support level at $0.3275, raising concerns that it could further decline toward the next major support level around $0.2800.

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However, a closer analysis of the liquidity order book suggests potential signs of recovery. Large investors, known as whales, have placed significant buy orders at these lower price levels.

Specifically, they have invested $1.77 million in buy orders between the $0.27 and $0.28 range. This whale activity indicates that ADA could find support in this region, offering a possible reversal in its downward trend.

While ADA faces ongoing challenges, community-driven efforts and strategic investments by large players could provide a foundation for a potential recovery in the future.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.