Can Adana’s ISPO Help Cardano (ADA) Move Above $1?

Cardano has been trying to increase its real-life use-cases, especially since the launch of the Alonzo upgrade last September, which enabled the building of smart contracts on the Cardano blockchain. The first DEX, which is SundaeSwap on Cardano, went live, but there were issues with congestion, which on one hand shows that the interest from the public is high, but on the other hand, it also brings problems to light, and the main one for the crypto market has been the lack of scalability, which causes congestion.

Cardano’s development team is making efforts to improve and solve the problems by increasing the block size by 11% and expanding the Plutus script memory units, enabling smart contracts to process a greater quantity of data. However, the sentiment remains bearish for ADA coin. ADA/USD has been declining since early September, when it was trading at around $3.10. It fell below $1 that week. The low print came at $0.83, so this cryptocurrency is trading in the bearish zone now. Although, Ardana might improve the situation for Cardano.

Ardana to Launch Initial Stake Pool Offering

Ardana, which is a hub for decentralized stablecoins, aims to bring the necessary basics for decentralized finance (DeFi) to Cardano. They are needed to start and maintain any economy on this blockchain. The dUSD stablecoin is backed by on-chain collateral, which is also used to take leverage on their ADA or other supported assets, while the utility and governance token, DANA, rewards holders with profits from Ardana.

Now, this Cardano-based decentralized stablecoin hub is launching the Initial Stake Pool Offering (ISPO) with its native token, DANA, with the aim of boosting stake pool diversity on Cardano. Staked ADA coins have mainly been grouped in only a few SPOs (Stake Pool Operators), so, according to Ardana, one of the main goals of this ISPO will be to provide fair and decentralized incentives to smaller and larger ASPA member pools. This will increase the interest to stake in Cardano and help it grow further into the DeFi sector of the crypto industry.

Cardano Daily Chart Analysis – MAs Keeping ADA Bearish

Let’s see if the $1 resistance will turn into support for ADA 

Despite the Alonzo upgrade in September last year, which should have improved the sentiment for Cardano, ADA turned bearish at $3.10 that month, following a strong rally from above $1 in August, which has been a major support zone. During the decline, moving averages have been doing a great job as resistance indicators, stopping the retraces higher and pushing ADA/USD lower.

The last decent bullish attempt came in January, but that ended at the 100 SMA (green) on the daily chart, and the decline resumed again. The support zone around $1 held at the end of last month, but after another failed attempt to turn bullish at the 50 daily SMA (yellow), the support level has finally been broken. ADA/USD is now trading at $0.91, but we are staying on the sidelines until we see a bullish reversing pattern, because all support levels have been broken.

 Cardano Coin ADA Live Chart

 

ADA/USD

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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