Home CryptoCurrency News Cardano News A big break coming for Cardano ?

A big break coming for Cardano [ADA]?

Thanks to the Alonzo update, Cardano [ADA] managed to swoop in and join the big leagues. However, its current price inaction poses a serious threat. But are the revival cues enough for the ADA to see its previous glory?

Several altcoin’s growth trajectories have been phenomenal this quarter. including Solana [SOL], for one, managed to even flip Cardano. As for the latter, its price broke below the crucial support level of $1.9 following this week’s crypto market meltdown. So far, it has managed to hold its fort above the 200 daily moving average of $1.86. 

If history repeats

After Cardano's [ADA] underwhelming week, what lies ahead?

The trading volume remained tepid throughout the week. The 50 DMA [Pink] appeared to be closing in with the 200 DMA [Yellow]. ADA had previously dodged a death cross in mid-August which was preceded by a local bottom just like the ongoing price action. If history repeats, ADA could again see a similar price rebound.

An uptick in volatility may be a precursor to such growth. 

Uptick in Capital Inflow Despite Discernible Catalyst

After Cardano's [ADA] underwhelming week, what lies ahead?

The Awesome Oscillator [AO] was in bears territory, so was the daily Relative Strength Index [RSI] which appeared to be heading towards the oversold region. But the Chaikin Money Flow [CMF] deviated from the overall market trend and noted an uptick above the zero-line, indicating capital inflow in the coin market.

If Cardano manages to pull itself back up, the first hurdle will come into play at $2.26. A breach of this level would help ADA in getting a much-needed leg up to target the next crucial resistance points of $2.63 and $2.96. Its support level, on the other hand, stood at $1.42.

Cardano investors are in no mood to give up

After Cardano's [ADA] underwhelming week, what lies ahead?

ADA investors have remained unfazed by the asset’s underwhelming price action. As a matter of fact, the altcoin clocked in $16.4 million in weekly inflows, according to the latest data compiled by CoinShares‘. As opposed to a mere $5 million in the last weekly report, ADA weekly inflow figures have risen by well over 220%. Additionally, ADA’s MTD flows stood at $21.4 million.

While Cardano’s price front has remained bland, the same cannot be said about developments across its ecosystem. Crypto Economy had recently reported a new milestone by the Cardano blockchain as it surpassed Ethereum blockchain and went on to become the second-largest active blockchain on the 16th of November.

Besides, Cardano has also forged numerous partnerships across regions such as Africa.

Chayanika has been working as a financial journalist in the cryptocurrency and blockchain industry for almost three years. She has closely followed the growth and adoption of the sector since 2018. Her inclination lies in writing impactful, data-driven stories.
- Advertisment -