Cardano [ADA] Falls Below Critical Support Zone After Slashing 23% Gains

Cardano [ADA] saw one of the most damaging turn of events in the latest market-wide pullback. The sixth-largest crypto-asset slashed its weekly gains by 23% after the fall.

In the weekend crash, Cardano fell to a price of $0.89, a level that was last seen on the 15th of March. The red candles all over the chart were prompted by the fall of Bitcoin from the psychological support of $50K. The altcoins followed suit with no sign of slowing down.

Despite undergoing a mild recovery, the digital asset was still down by 12.96% as it exchanged hands at $1.07 over the past 24-hours.

Cardano ADA Daily Chart Depictions: Technicals Looks Bleak

The technicals do not appear to be favoring the bulls anytime soon. Cardano tested the freshly established demand zone ranging from $1.10 to $1.17. Despite attempts of mid-week bullish retreat, the weakness in momentum has kept the crypto from soaring higher.

This can be evidenced by the Relative Strength Index which was heading towards the oversold conditions, depicting that ADA investors quickly offloaded their stack as Cardano formed an all-time high last week.

The Bollinger Bands, on the other hand, hinted at divergence suggesting a period of high volatility in the coin market and a steep market movement in either direction in the coming days.

ADA has been on the rise since December 2020. But it is important to note that the digital asset has surged to become one of the top 10 cryptocurrencies in the world by market cap in a relatively short time span.

Currently, the blockchain project getting ready for its next major upgrade that entails facilitating smart contract capabilities with the Alonzo update. The team had recently hinted that the Cardano ecosystem could potentially support non-fungible tokens [NFT] in the coming months.

Charles Hoskinson’s Take On US Market

The US has been known for making innovation-driven decisions but when it comes to the crypto industry, it is a different scenario altogether. The maturing digital asset space has met with all kinds of challenges which include a lack of regulatory clarity despite the fact that the industry players are busy lobbying in a bid to achieve the same.

In a recent live stream, the CEO of IOHK, Charles Hoskinson acknowledged that the team will do everything in their capacity to interface with regulators and lobby against regulations that can be damaging for the space.

While replying to the critics calling Cardano a scam, Hoskinson went on to say that it is these baseless accusations against Cardano and other cryptocurrency projects that impede the growth and industry adoption. His tweeted,

“It’s extraordinary. Every day so many of these Podcasters feel comfortable calling Cardano a “blatant scam”. It’s one thing to say you’re skeptical. It’s another to call us criminals. This is crypto in 2021. Figure out why so many people want nothing to do with it?”