Cardano (ADA) is trading steady, recovering after dipping close to the key $2 level, but moves are likely to remain weak amid a risk-averse mood in the global financial markets as investors remain uncertain about the China Evergrande’s default situation and its spillover effect. At the time of writing, ADA/USD is trading around $2.13.

The reigning bearish mood in the crypto market has caused the potential Ethereum killer to slide down to the fourth position in rankings by market capitalization. Cardano had previously risen to become the third largest crypto by market cap as soaring optimism about the Alonzo upgrade bringing smart contract capabilities to its ecosystem had sent its price to new ATHs. However, the bullish sentiment started to weaken once the hard fork was accomplished successfully amid profit taking by investors and ADA’s price was weakened further as crypto king Bitcoin registered sharp losses over the past few sessions.

Can Fundamentals Offer Hope of Reversal?

On the fundamentals front, however, Cardano has several exciting developments that can support its price once the market sentiment improves. The most interesting one is the upcoming Cardano Summit, scheduled to take place on September 25 and 26, where the Cardano Foundation will unveil details on ‘ground-breaking’ announcements on new partnerships that will make the most of its latest features. In addition, the hybrid event being held across Europe, US and Africa will host several key experts in the crypto field and also include community-led events to drive up engagement and adoption of the blockchain’s technology among users around the world.

One interesting upcoming project, ADALend, promises to bring a scalable and decentralized lending protocol to the Cardano ecosystem, offering users a way to gain access to instant loan approval, automated collateral, trustless custody and liquidity. ADALend will support a permission-less interface with incentivized liquidity and be governed solely by its community while enjoying the academic backing enjoyed by Cardano’s blockchain.

According to popular crypto analyst and trader Benjamin Cowen, Cardano’s price could hold around the 20-week SMA before moving higher, in a best case scenario. He forecasts a slow, steady and sustainable rise in ADA’s value, especially cautioning that it could be weighed down in the short term in case Bitcoin’s price collapses further.

Key Levels to Watch

On the 4-hour chart of ADA/USD, almost all moving averages along with the MACD are exhibiting a strong bearish bias. Although, the momentum indicator suggests some buying interest among investors at the moment as well.

Cardano’s price is sitting below not only the pivot point at $2.37 but also a support at $2.16. Further bearish pressure can take it even lower towards the support at $2.04. If this level breaks down, we can see ADA tumble under the key $2 mark.