The first half of 2023 has been challenging for Cardano (ADA) as the network failed to capture investors’ attention despite ongoing ecosystem development and a promising forecast for ADA’s price. Compounded by the Securities and Exchange Commission (SEC) labeling ADA as an unregistered security, the price experienced a significant loss in its bullish momentum, leaving it struggling to recover from the bearish impact. However, ADA’s latest upward correction has sparked bullish promises of a breakout above $0.3.
Cardano’s Growth is on a Declining Path
Cardano’s development activity saw a significant decline, according to Santiment’s chart, indicating a negative signal for the blockchain. This decrease suggests that fewer efforts were made by developers to improve the network.
Furthermore, Electric Capital’s data reveals that Cardano did not rank within the top 16 in terms of developer growth. This has raised concerns within the community, as many question the apparent deliberate boycott of the protocol and its developmental activities.
Despite these challenges, Cardano continues to publish its ecosystem growth insights on a weekly basis, highlighting a consistent increase in the number of smart contracts published, token policies issued, and transactions conducted on the network.
ADA’s 1-week price volatility has fallen sharply. However, despite the price decline, ADA’s social dominance and transaction volume remained relatively high. On a positive note, ADA’s open interest, as reported by Coinglass, has declined, which could potentially indicate a forthcoming end to the ongoing price trend.
Recently, bulls drove Cardano’s price above the 20-day EMA at $0.28, and they were able to maintain these elevated levels. However, after reaching a high of $0.294, bears triggered slight selling pressure due to a spike in long liquidation, according to Coinglass. Currently, the price is consolidating in a bullish zone at $0.291, with an uptick of 1.7% from yesterday’s rate.
For the bullish ascending triangle pattern to remain intact, the bulls must safeguard the uptrend line. If the price bounces back from this point, the bulls will once again attempt to push the ADA price beyond the $0.3 resistance. If they succeed, the price could potentially initiate a new upward trajectory toward $0.33 and, subsequently, $0.38. As the RSI level trades way above the midline at a level of 59 and the SMA-14 indicator trades in bullish territory, it indicates that bulls have control of the price chart.
However, if the price falls below the downtrend line, it will negate the bullish pattern and plunge the altcoin to $0.26. This would suggest a period of consolidation between $0.23 and $0.30 for some time.
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