Cardano Price Slips by 2.88% – Time to Buy ADA Coin?
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- Cardano (ADA) has dropped for the first time in 10 trading days due to a lack of investor confidence.
- Bitcoin (BTC) and other leading altcoins, such as Cardano (ADA), have lost their positive traction.
- Cardano’s price prediction remains bullish above the $1.4350 trading level.
Despite several recent Cardano Network developments, the ADA/USD coin failed to extend its bullish rally. Instead, it drew some modest offers near the $1.46 mark amid a negative crypto market mood. Today, in the early European trading session, the ADA/USD coin failed to extend its long bullish rally and dropped 2.88% to trade around $1.46 on the day.
The price of Cardano (ADA) has dropped for the first time in 10 trading days due to a lack of investor confidence, which pushed the crypto market down. Cardano (ADA), a digital currency, has increased in value by over 8% in the last 48 hours and by 25% in the previous seven days. The price move follows an update on Charles Hoskinson’s and IOHK’s plans for the Cardano network in 2022. Aside from that, a weaker US dollar was one of the critical factors that helped the ADA/USD coin limit its losses.
Cryptomarkets’ downbeat sentiment weighs on Cardano.
The downbeat mood in the crypto market kept most altcoins under pressure, but weaker Bitcoin prices could not. The Bitcoin price failed to break above the $52,000 resistance zone versus the US Dollar. BTC has begun a significant decline, trading below the $50,000 support level.
As a result, Bitcoin (BTC) and other leading altcoins, such as Cardano (ADA), have lost their positive traction, indicating that traders are selling and the sentiment is deteriorating. Currently, the ADA/USD coin is trading at the 1.4558 level and consolidating in the range between 1.4354 and 1.5151.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Cardano and rise with the market.
Billionaire Ray Dalio’s remarks turn crypto bearish.
Despite many breakthroughs in the crypto industry, the crypto market has been showing signs of weakness, potentially due to a lack of key data events and the holiday vibe. Apart from this, billionaire Ray Dalio believes that bitcoin’s price will not go higher, causing investor confidence to plummet and altcoin prices to plummet.
Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s largest hedge fund, believes that the price of bitcoin will never exceed $1 million. He explained, “Logically, there’s a limit on its pricing concerning other items like it.” Thus, most investors would consider this remark negative, causing investor confidence to plummet and altcoin prices to plummet.
Charles Hoskinson shares his aim for 2022.
Supporters of Cardano (ADA) were happy to get two updates from IOHK, the crypto project’s development team. Charles Hoskinson, the founder of Cardano, spoke for 30 minutes in a new video on December 24th, outlining some of his aims for the coming year.
During his video, Hoskinson stated, “My objective for the second half of 2022 is to figure out how to put all the pieces together to have an end-to-end microfinance transaction on Cardano.”
Hoskinson also stated that a formalized open-source system, akin to Linux, would be introduced. “A formal open-source project structure will be developed, similar to what Hyperledger has done for Linux,” Cardano’s founder revealed. Hoskinson also said there are “almost 15 companies working on Cardano right now across the world.” As per his keyword, “We need to increase that number to hundreds, and finally thousands.” We need universities and nation-states to engage actively and participate, and have a stake in the project’s success.“
Weaker dollar to support ADA/USD
The US dollar has failed to reverse its downward trend and is still flashing red for the day. However, fears about the highly contagious Omicron coronavirus are fading. Additionally, the positive US retail sales statistics encourage investors to seek riskier assets rather than safe-haven assets like the US dollar. As a result, the mild price movement in the US dollar appears to be limiting the price drops in Cardano (ADA).
Cardano technical outlook – Upward trendline to support ADA at 1.4350
Cardano’s price prediction remains bullish above the $1.4350 trading level. The ADA/USD coin plunged to test the crucial support level of 1.4357, which is being extended by an upward trendline. On the 4-hour timeframe, the ADA/USD coin is closing a shooting star candle followed by a downtrend. It suggests weakness in the bearish trend and the odds of a bullish reversal in ADA/USD.
A surge in demand above the 1.4357 level could lead Cardano’s price towards the 1.5955 or 1.6710 resistance levels. Conversely, the breakout of 1.4357 exposes the ADA/USD price towards 1.3839 or the 1.3063 level.
The leading technical tools like the RSI and Stock RSI suggest a mixed bias. For instance, the RSI is holding above 50, supporting an uptrend. While the Stoch RSI remains at 3, indicating that the ADA/USD is oversold. However, the 50-day exponential moving average supports an uptrend at 1.4185. Let’s consider staying bullish above $1.4357 and vice versa. All the best.
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