Cardano (ADA) appears to be undergoing somewhat of a price correction into Tuesday, easing slightly lower but managing to hold above the key $2 level as investors eagerly await the Alonzo upgrade scheduled to roll out in a few weeks. At the time of writing, ADA/USD is trading at around $2.06.

Cardano’s recent weakness could also be the result of comments from Mike Novogratz, CEO at Galaxy Digital, who played down the hype when he stated that he knew of no one in the crypto sector who saw the blockchain experiencing traction among developers. He made these remarks when asked why the blockchain had gone on to become the third largest crypto by market cap last week, adding that its popularity was a mystery to him.

Novogratz’s comments drew the ire of Cardano’s community and also sparked criticism from its co-founder Charles Hoskinson. Hoskinson compared his statement to similar observations made by bankers towards cryptocurrencies, and how they have been proven wrong since then.

Even as developers and users wait for the Alonzo HFC which will bring with it smart contract capabilities, Cardano’s native token is expected to enjoy some support from a recent survey by leading cryptocurrency exchange Gemini which found that it is the third most popular crypto in Singapore after Bitcoin and Ethereum. The exchange’s ‘State of Crypto in Singapore in 2021‘ reports that 40% of users hold investments in ADA and a majority, 31.9%, are most bullish about Cardano’s prospects.

Key Levels to Watch

On the H4 chart of ADA/USD, the smaller moving averages (red) as well as leading technical indicators MACD and momentum indicate some selling pressure in the near-term. However, the longer timeframe MAs are suggesting a bullish bias among investors, indicating that the price may see a temporary dip before picking up again.

Cardano’s price continues to hold comfortably above the pivot point at $1.93 and has a long way to go before buyers could encounter the first resistance at $2.48. A break past this level can see the ADA go past $2.50 and $2.75 before finding resistance again at $2.79.