In the past 24 hours, Cardano (1) has maintained its sideways trend, initially rising by almost 2% until violent sell-offs caused the currency to sink twice to $0.36.
ADA decreased by 1% in 24 hours
The currency found solid support at $0.36, but its Relative Strength Index (RSI) is presently merely 27 on the 1-day chart, the lowest score among the top 100 currencies only behind XRP, and XLM seems to be going towards the 'Weak' zone. To $415 million, trading volume jumped by over 20%. Following the publication of the US Consumer Price Index last week (2), Cardano (ADA) hit a 21-month low.
ADA has struggled all weekend and fluctuated between $0.36 and $0.38. The token, down 70% in 2022 and nearly 90% from its all-time high, has its next line of support at $0.35 and its next line of resistance at $0.40. While other coins recovered after the inflation news was revealed, ADA has struggled all weekend.
What about now?
On the 12-hour chart, the currency displays a falling wedge pattern, as it's the short-term price on Monday. It is currently positive, as support has been consistently established at $0.36. As has also been seen, a rise in trade volume typically supports bullish price movement. Short-term traders must remember that the coin is still bearish and that volatility will probably follow it in the coming days.
The 50-day SMA at $0.4178, the 100-day SMA at $0.4455, and the 200-day SMA at $0.4692 are potential profit-taking situations. Some traders also think Cardano might yet decline much more. The next level of support is $0.30; if it is breached, some analysts think $0.25 and even $0.15 may be in play.
Any room for growth?
Cardano has long been a darling of longer-term cryptocurrency investors despite the token's difficulties in the past year. Various data metrics show investors' confidence in the project is still high. The number of transactions, volume, and on-chain activity continued to rise in 2022, according to a pair of statistics from blockchain experts Messari, indicating that the protocol is now being utilized more than ever. Even though the price of ADA has decreased, current owners have been adding to their token holdings.
The number of holders of 100 to 1,000 tokens has increased from 0.92% to 1.15% of the total supply in circulation, while the number of holders of 1,000 to 10,000 coins has decreased by 0.59% to 4.95%. The amount of Cardano NFTs has also increased this week as investors switch from the competitor Solana chain to the chain. Following Magic Eden's announcement (3) that royalties would no longer be required, which raised concerns about the potential impact on new connections, the action was taken.
New competition
Green investors can also think about IMPT (4), a net-zero project that has raised more than $5 million in only two weeks since its presale debut. By awarding customers with IMPT tokens that can be exchanged for carbon credits, the initiative seeks to alleviate the climate catastrophe.
The credits function as licenses that let businesses produce greenhouse gases while offsetting their carbon footprints by contributing to international conservation initiatives. Along with keeping a scorecard to measure progress, IMPT wants to make carbon credits tradeable and accessible to individuals and businesses. Companies like Amazon, Microsoft, and LEGO have already cooperated with IMPT.
