For longer than other altcoins, the Cardano (ADA) price was stuck in a deep bear trend. However, recent data shows that bullish sentiment is returning. But, the ADA price is facing one last key challenge to start a major rally.
A look at the 1-day chart of ADA reveals that the price managed to break the 200-day exponential moving average (EMA) at $0.396 to the upside today. The 200 day EMA is traditionally used to indicate the long-term trend and is considered a bear/bull boundary line.
At the time of writing, ADA was trading at $0.408, but is still facing probably its biggest challenge in recent weeks: the resistance area between $0.42 and $0.43. This zone served as the strongest support from May to October 2022.
Since the area was breached to the downside on October 11, 2022, ADA price has failed to close above this area on the 1-day chart. Several attempts in October 2022 and February 2023 failed. A recapture of this price level would be of major importance and could trigger a rally towards $0.60.
ADA price, 1-day chart | Source:
Cardano (ADA) Fundamentals Look Impressive
The fundamentals confirm the bullish trend for Cardano. Analyst Ali Martinez reported in a tweet yesterday that ADA whales are on a shopping spree. In the last 2 weeks, they have purchased 560 million ADA tokens worth $218.4 million.
This suggests that ADA has become more attractive to larger investors again after the price started showing signs of recovery. A notable success has also been by ADA community member Darren.
According to Messari’s data, Cardano has the highest transaction volume of any blockchain in the last 24 hours, ahead of Bitcoin and Ethereum. The volume was $10.82 billion. In the same period, Bitcoin had a transaction volume of $6.8 billion and Ethereum of $1.86 billion.
Cardano tops Bitcoin in transaction volume (24h) | Source:
However, there is a twist to the stats. According to Messari, only 51,215 addresses were responsible for this volume, while Bitcoin (936,122 addresses) and Ethereum (518,857 addresses) had much higher user numbers. One putative reason could be whale transactions, as Martinez also acknowledged.
This would also go along with the news from Grayscale. The company announced last week that it had expanded its ADA stake in the Smart Contract Platform Ex-Ethereum Fund (GSCPxE).
As of April 5, 2023, the GSCPxE’s fund holdings consisted of a basket of six digital assets, with Cardano taking the largest share at 28.13%. It was followed by Polygon (21.30%), Solana (16.51%), Polkadot (15.38%), Avalanche (11.97%) and Cosmos (6.71%).
At EOD on April 5, 2023, the Fund Components of GSCPxE were a basket of the following assets and weightings:
Moreover, Cardano’s decentralized finance (defi) sector is also slowly gaining strength. According to from DefiLlama, total value locked (TVL) increased by 47.5% last month. However, with a TVL of $151.98 million, Cardano remains only 18th in this ranking, led by Ethereum ($30.58 billion), Tron ($5.55 billion), and BSC ($5.1 billion).
Featured image from Forbes, chart from TradingView.com
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with ktsl888.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
Read more
His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.
For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
You can engage with his latest takes on Twitter: @realJakeSimmons.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
