Altcoins
Cardano (ADA) sees slowdown amid broader Altcoin market slowdown
Amid a broader downturn in the altcoin market, Cardano (ADA) has also seen a retracement. Over the past 24 hours, ADA has been trading in bearish momentum, with the price fluctuating between an intraday high and low of $0.633 and $0.59, respectively. At press time, ADA was still in a bearish phase, with the price down 5.29% from the resistance level and trading at $0.5977.
Entries in Cardano investment products
Recent data reveals a reversal in the Cardano investment landscape, with a notable $1.1 million inflow into Cardano-centric investment products over the past week. This increase in inflows marks a significant turnaround from the $3.7 million outflows recorded a week prior, indicating renewed investor interest in ADA-oriented investments.
Since the start of the year, Cardano has attracted around $6 million in inflows into ADA-oriented investment products, highlighting its growing importance among investors seeking exposure to alternative assets.
Despite market fluctuations, Cardano’s unwavering commitment to innovation and network expansion has boosted investor confidence in its long-term viability. The cryptocurrency showed commendable performance in the first quarter of 2024, with its price reaching $0.80 in March, driven by strong developer activity.
Cardano maintained its momentum and became a leader in weekly commits on GitHub, surpassing giants like Ethereum in terms of development activity. Insights from marketing intelligence firm IntoTheBlock confirm Cardano’s status as the most actively developing crypto blockchain, surpassing even Ethereum in terms of cumulative developer contributions.
Sustainability challenges and concerns
However, despite its positive trajectory, Cardano faces sustainability challenges. Stakeholders have highlighted the need to increase the number of transactions on the Cardano blockchain to ensure its long-term viability. CEO of NMKR, Patrick Toblerargues that managing stake pools could become unprofitable if there was not a significant increase in transactions.
Although Cardano founder Charles Hoskinson recognizes the importance of increasing transactions, he believes that sustainability depends on other factors such as partnerships, increased transaction volume, and appreciation of the value of the ADA. Striking a balance between growing transactions and maintaining the profitability of the stake pool remains crucial to the sustainability of Cardano.
Technical analysis and price movement
Technical analysis indicates that ADA price is struggling below the $0.650 resistance against the US Dollar. With the Relative Strength Index (RSI) moving south below its signal line and the Rate of Change (ROC) in the negative region, the bearish strength is increasing. Meanwhile, the recent downward correction from the $0.6840 area suggests a potential risk of a downside break below the $0.583 and $0.569 range. ADA price is currently trading below $0.584 and the 55 simple moving average (4-hours), indicating short-term bearish momentum.
ADA/USD 24-hour price chart (source: Trading View)
Immediate support levels lie near the $0.580 and $0.569 levels, with further downside potential towards $0.530 on further losses. On the upside, ADA could resume its rally if it breaks the $0.6260 and $0.650 resistance levels, with potential targets at $0.6840, $0.720 and $0.750.
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