On Thursday, Cardano (ADA) is back on its bearish path, but looks like it’s working its way back up, undergoing some consolidation as moves in the wider crypto market remain sluggish. At the time of writing, ADA/USD is trading around $2.50.
Although the downslide in Cardano started shortly after the rollout of the much await Alonzo upgrade, the smart contract functionality it brought has seen much traction among users of the blockchain. Within 24 hours after the hard fork, over the network processed more than 100 smart contracts and the first dApp on Cardano was also deployed successfully after the feature went live.
Fundamentals Offer Some Support
The news of the rising adoption of its smart contract features could offer some support to ADA in the near-term. In addition, the world’s third largest cryptocurrency could also find some support from the listing of Cardano on PrimeXBT, a popular multi-currency trading platform. In keeping with the increasing interest among users to invest in cryptocurrencies, the platform announced the listing of the seven largest cryptocurrencies, ADA included, allowing them to be traded against USD and in some cases, even BTC.
After gaining smart contract capabilities, Cardano looks all set to get its very own version of PancakeSwap, with the addition of decentralized exchange protocol SundaeSwap to CardanoCube – the blockchain’s native DEX. SundaeSwap will allow native token and ADA exchanges to be more accessible to crypto traders, letting them swap, stake, borrow, lend and trade in a completely decentralized manner.
Meanwhile, the market sentiment could keep Cardano trading under pressure in the coming sessions, with popular crypto analyst and trader Justin Bennett forecasting a strong pullback in the crypto soon. In a recent update, he goes on to explain that Cardano needs to break past the $2.55 mark to overcome the correction, and unless this happens, it could make its way lower to test the key $2 level.
Key Levels to Watch
On the 4-hour chart of ADA/USD, the smaller timeframe MAs and 200 EMA, along with leading technical indicators MACD and momentum are exhibiting a bullish bias at the moment. Although, the remaining timeframes show some interest among sellers.
Cardano’s price is sitting right at the pivot point at $2.50 but it needs to break past this level and hold to confirm a return of a bullish sentiment. If this happens, buyers will then encounter resistance at $2.99.