Cardano Witnesses Correction After Failing to Break Above $0.41
Cardano (ADA) is one of the most popular and promising cryptocurrencies in the market, with a loyal fan base and a visionary founder. The project aims to create a decentralized platform that can run smart contracts, dApps, and other blockchain applications with high scalability, security, and interoperability. Cardano also boasts a unique proof-of-stake consensus mechanism called Ouroboros, which is designed to be energy-efficient and environmentally friendly.
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However, despite its impressive features and potential, Cardano has been struggling to gain momentum in the recent weeks, as the crypto market witnessed a sharp correction and increased volatility. Cardano’s price failed to break above the key resistance level of $0.41, which has been acting as a strong barrier for the bulls since late October. The price also faced downward pressure from the 50-day and 100-day moving averages, which are currently converging around $0.38.
As a result, Cardano entered a downtrend and dropped below the $0.35 support level, which had been holding the price for the past month. The price also broke below the lower boundary of a descending triangle pattern, which is a bearish signal that indicates a continuation of the downward movement. The next major support level for Cardano is at $0.30, which is the lowest point reached by the price since July.
The technical indicators also confirm the bearish outlook for Cardano, as the RSI is below 40 and the MACD is below the zero line. Both indicators show that the sellers have the upper hand and the momentum is negative. The volume has also been declining, which suggests a lack of interest and enthusiasm among the traders and investors.
However, not all hope is lost for Cardano, as the project is still working on its roadmap and development. The team recently announced that they have successfully deployed the Alonzo Purple testnet, which is the final stage before the launch of the Alonzo hard fork. The Alonzo hard fork will enable smart contract functionality on Cardano, which is a highly anticipated and awaited feature that could unlock new use cases and opportunities for the platform. The team also said that they are on track to launch the hard fork by the end of November, which could be a major catalyst for Cardano’s price recovery.
Additionally, Cardano has a strong community and network effect, which could help it weather the storm and bounce back. According to data from CoinMarketCap, Cardano is the sixth-largest cryptocurrency by market capitalization, with a value of over $37 billion. It also has over 2.8 million active addresses, which is the third-highest among all cryptocurrencies, behind only Bitcoin and Ethereum. Moreover, Cardano has over 3,000 stake pools, which is the largest number among all proof-of-stake cryptocurrencies, and over 71% of the total supply of ADA is staked, which shows the confidence and loyalty of the holders.
Therefore, while Cardano is facing a tough challenge in the short term, it could still have a bright future in the long term, as it continues to innovate and deliver on its vision. Cardano is one of the most ambitious and advanced projects in the crypto space, and it could become a leading platform for the next generation of decentralized applications.
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📌Sources
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(2) Next Cryptocurrency to Explode Wednesday, 22 November – Bitcoin Minetrix, FTX Token, THORChain | InsideBitcoins
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