2024-6-25 23:12 |
Cardano (ADA) has faced downward pressure in recent weeks, with Sunday marking its fifth consecutive week of decline.
Notably, the cryptocurrency, which has been part of a major bull run since October 2023, has seen its price fall below significant support levels, recently breaching the $0.4 mark, previously held as strong support. In the past week, crypto assets have dropped by almost 7%, with only 25% of traders being profitable, according to data from IntoTheBlock.
This comes even as investor sentiment has been dampened by dwindling trading volumes and persistent selling pressure, contributing to ADA’s current position below key moving averages. Earlier this week, crypto analytics platform Santiment identified ADA as one of the most heavily shorted altcoins alongside XRP following relief bounces. However, despite this, the analysts expressed hope, noting that “this is a good sign for patient bulls, as liquidates shorts can effectively act as ‘rocket fuel’ for continued price rises.”
Meanwhile, ADA price challenges come even as the Cardano community eagerly anticipates the upcoming Chang Hard Fork scheduled for this quarter. This upgrade is touted as the largest since Vasil in September 2022 and promises to introduce community governance features. This includes the implementation of a “Cardano Constitution” and mechanisms for ADA holders to participate in governance through voting.
Recently, Cardano published its Interim Constitution. This foundational document will guide the Interim Constitutional Committee (ICC), which plays a pivotal role during the technical bootstrapping phase of the Chang hard fork. The ICC is tasked with upholding the interim constitution and ensuring that all governance actions align with its mandates. The ongoing voting process for the ICC is expected to conclude on Sunday, June 23, while the results of the committee’s election are slated for announcement on June 26.
Whereas ADA fails to have a grounded support level now, some analysts like “Fiery Trading” have identified a potential rising channel on the weekly chart. In a post on TradingView, the pundit expressed optimism about a possible new cycle that could propel ADA towards $45 or higher within the channel in the next bull season, calling ADA’s current price an “entry of lifetime.”
In contrast, some analysts, such as “Swallow Premium,” predict further downside, identifying $0.2465 as a critical support level following ADA’s failure to consolidate above the $0.40 “local liquidity” level.
Nevertheless, data from IntoTheBlock indicates ADA is anchored in a robust support zone between $0.37 and $0.30, where approximately 568,000 addresses hold 3.15 billion ADA, valued at around $1.3 billion.
Maintaining this support level will be crucial for ADA to sustain upward momentum and potentially recover from its recent price declines.
ADA traded at 0.3874 at press time, reflecting a 0.002% loss over the past 24 hours.
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