Market Sentiment Sends Cardano (ADA) Lower: What’s Next? - Forex News by FX Leaders
Market Sentiment Sends Cardano (ADA) Lower: What's Next?

Market Sentiment Sends Cardano (ADA) Lower: What’s Next?

Posted Wednesday, August 25, 2021 by
Aiswarya Gopan • 2 min read

Early on Wednesday, Cardano (ADA) extends its weakness from the previous session after crypto king Bitcoin fell back under the $50,000 level and dented investor optimism in the overall market. At the time of writing, ADA/USD is trading at around $2.66.

The third largest cryptocurrency by market capitalization has enjoyed quite the bull run over the past several sessions, rising to new ATHs and giving back immense profits to its investors. In less than a month, between July 20 and August 24, the total number of wallets holding Cardano with a balance of a minimum of $1 million has increased from 3,625 to 9,830. This is a steep rise from the 540 Cardano millionaires seen in the beginning of 2021.

In his most recent strategy session, leading crypto strategist and influencer Scott Meller has projected more gains in the near-term for Cardano’s ADA. He expects gains of around 20% from current levels which could take its price towards a new ATH of $3.40.

Making the most of the bullish mood and rising interest in the cryptocurrency, Cardano-based decentralized fundraising launchpad KICK.IO has announced that it will hold its initial exchange offering (IEO) on September 16, a few days after the Alonzo HFC takes place. With the positive sentiment towards cryptocurrencies prevalent currently, its public sale is already heavily oversubscribed by both retail and institutional investors.

However, its increasing popularity among investors has also raised activity among scammers looking to profit from all the attention. In a recent video posted by Cardano’s co-founder, Charles Hoskinson, he cautions the community, “Anytime you see major events coming, and large scale price appreciation, and a lot of volatility, you will always see an enormous increase in scams.”

Key Levels to Watch

On the 4-hour price chart of ADA/USD, most of the moving averages (red and yellow) as well as leading technical indicators MACD and momentum are exhibiting a bearish bias at the moment. However, the larger timeframe MAs are still flashing buy, suggesting some buying interest as well.

ADA/USD

Despite its slide, Cardano’s price remains comfortably above the pivot point at $2.43 but further weakness can take it towards this level. On the other hand, if buying interest builds up, we can see ADA climbing higher towards reclaiming the ATH and testing the $3 mark, but not before facing resistance at $2.99.

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