Has Cardano Been More Profitable Than Bitcoin Lately?
Cardano (ADA) prices are on the decline on Tuesday, falling under the key $1.30 level as investor sentiment towards the wider crypto sector
Cardano (ADA) prices are on the decline on Tuesday, falling under the key $1.30 level as investor sentiment towards the wider crypto sector deteriorates following Bitcoin’s slide back under the $40,000 mark. At the time of writing, ADA/USD is trading at around $1.27.
Despite several encouraging fundamental developments, Cardano’s price action has followed the market leader into bearish territory as moves in Bitcoin often have a significant impact on the mood towards other digital currencies as well. After rising above the $40k mark, BTC was unable to hold or rise further and the slip below this key level has shaken investor confidence in the market.
Meanwhile, there are several reasons to remain optimistic about the Ethereum killer in the coming months, especially as users eagerly await the Alonzo upgrade which will empower the blockchain with smart contract capabilities, enabling it to make a mark in the DeFi space. Recently, fundraising platform built on Cardano’s network, Kick.io, is gearing up for its launch and looks set to pull DeFi projects off Ethereum.
Late last week, trader and influencer Peter Brandt shared an update via Twitter, forecasting upcoming downside action in ADA which could cause its price to crash by as much as 90% soon. Brandt’s technical analysis was shot down by Cardano’s co-founder Charles Hoskinson, who maintained that his exclusive technical analysis without any fundamental factors backing it makes no sense.
So far this year, the fifth largest crypto by market cap has strengthened by 670% and managed to remain less affected by the crypto market crash in mid-May due to its promising features and offerings. Analysis of on-chain data also reveals that there ADA holders have a higher balance per address when compared to market leader BTC, indicating higher profitability for the former.
Key Levels to Watch
On the H4 chart of ADA/USD, most of the moving averages as well as leading indicators MACD and momentum are suggesting a strong bearish bias, in keeping with the overall mood in the crypto market. Cardano’s price is sitting below the pivot point at $1.31 but is holding above the immediate support level at $1.22.
An increase in selling pressure can see ADA test this level and possibly head lower, falling under the $1.20 mark until the next support at $1.12. However, in case the mood in the market improves, we could see buyers take the price back above the pivot point towards the $1.40 level which is acting as resistance at the moment.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals