Why is Cardano Making Lower Highs Despite Strong Fundamentals?
Trading in Cardano (ADA) appears somewhat muted on Wednesday, with the price on its way back up after a slight dip earlier in the day, while
Trading in Cardano (ADA) appears somewhat muted on Wednesday, with the price on its way back up after a slight dip earlier in the day, while some technicals suggest that it appears to be making lower highs, exhibiting signs of selling pressure looming on the horizon. At the time of writing, ADA/USD is trading around $1.33.
On the fundamentals front, Cardano has a lot of positive developments that are lending it support, despite the somewhat bearish tone towards it being suggested by the recent price action. For starters, earlier this week, a leading crypto analyst who goes under the pseudonym Capo, took to Twitter to announce to his over 136k followers that he was dumping his ETH holdings in favor of ADA, indicating that the latter was among “the best-looking majors”.
Meanwhile, the interest in the cryptocurrency remains strong and heads higher, with the total number of staking addresses surpassing 660,000 after rising by over 50,000 during the past three weeks alone. This works out to an increase by nearly 10% since the beginning of June.
In terms of adoption as well, things are looking promising for the Cardano network lately. Earlier this week, Occam.fi announced a partnership with leading stablecoin issuer Stasis to launch the first Euro stablecoin on the Cardano network, labeled Stasis Euro (EURS).
Additionally, a Seychelles-based venture capital firm Vendetta Capital announced the launch of a community-based Launchpad, Ventup, for high-growth potential projects powered by Cardano’s ecosystem. This development ahead of the launch of smart contracts on the blockchain network hints at numerous upcoming use cases, which in turn could drive up interest in Cardano and hike up the value of its ADA token in the coming months.
Key Levels to Watch
On the H4 chart of ADA/USD, the medium timeframe MAs as well as leading technical indicators are supporting a bullish bias. However, the longer term moving averages are suggesting some selling pressure.
The price is well above the pivot point at $1.25 for now, and buyers have the scope to take the price higher until they hit resistance at $1.51 and then at $1.69. A break above the second resistance level opens the door for ADA to test the key $2 level again, as long as the bullish sentiment is maintained.
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