Cardano (ADA) price is not looking very bullish as the coin remains in an downtrend. The selling pressure seems to have significantly increased since last month’s sell-off in cryptocurrencies. ADA coin is trading only 16% above its yearly lows.
On Wednesday, most altcoins are trading sideways as BTC remains stuck in a very narrow trading range. The volatility has significantly decreased in the past few days. There is also a sharp decline in trading volume. Nevertheless, the analysts expect a major move in the coming days.
According to the latest Cardano news, the network activity has significantly increased in the past few months. The latest on-chain data suggests that the transaction volume on the Cardano blockchain has surged 1700% since January 2023.
The increase in on-chain activity can also be confirmed by a TVL increase since the start of 2023. The total locked value (TVL) on Cardano has increased more than 200% since the start of this year. Currently, there is more than $155 million locked on the smart contract platform. However, Cardano price is yet to react to these bullish developments.
Technical analysis of the ADA price chart reveals the areas of support and resistance. The following chart shows that the price has been respecting a downward trendline since April 2023. If the price fails to break out from this trendline anytime soon, I expect the continuation of the bearish leg.
Cardano price prediction of $0.10 will be on the cards if it gains acceptance below $0.22. Bitcoin’s breakdown below $25,000 may a catalyst for such a bearish move. The first major resistance level for the bulls remains the $0.30 support level.
I’ll keep posting my updated Cardano analysis and my personal trades on Twitter, where you are welcome to follow me.
This post was last modified on Sep 06, 2023, 08:18 BST 08:18