Cardano is a blockchain platform that uses proof-of-stake (PoS) technology as an effective substitute for proof-of-work (PoW) networks. On Twitter, there have recently been complaints that Cardano is overly centralized and that its parent firm, Input Output Hong Kong (IOHK), has the network set up such that it will always be in charge.
Charles Hoskinson, the inventor and CEO of Cardano, recently hit back at detractors after the collapse of the most recent crypto bank debacle. Hoskinson compared the activities of cryptocurrency companies like Circle, Paxos, and Tether with those of conventional banks in a tweet.
He noted that these companies have survived in the face of circumstances that have primarily led to the failure of traditional banks. Hoskinson also implied that the general public's opinion of cryptocurrencies hasn't altered at all, despite the tenacity of these crypto firms.
Cardano's (ADA) Position on the Market
Cardano (ADA) is the seventh-largest project in terms of market capitalization. Its price increased by 1.54% over the previous 24 hours, reaching $0.3311 at the time of publication. The market capitalization of the Ethereum-killer is approximately $11.492 billion.
The 24-hour trading volume for ADA is currently $337.530 million, down 39.30% from the previous day. Moreover, at $0.3323, the price of ADA is getting closer to its 24-hour high. The alternative currency's daily low is $0.321.
The altcoin's positive weekly price performance has been boosted by the 24-hour increase in ADA's price. The price of ADA has increased 7.60% in the past week as of publication.
Technical Overview of Cardano (ADA)
On Wednesday morning, the price of ADA fell below the $0.3417 support level. The price of ADA fell when it breached this level, dropping to a low of $0.3157 on Wednesday evening, just below the next support level at $0.3183. Thankfully, bulls were able to raise the price of the altcoin such that it closed the 4-hour trading session on Wednesday night above the $0.3157 level.
On its 4-hour chart, the price of ADA is currently moving beneath the 9 and 20 EMA lines. Once the shorter EMA line closed below the longer 20 EMA line on Thursday morning, the two EMA lines also indicated that the price of ADA had started a short-term bearish cycle.
The altcoin's price has been in a brief consolidation channel between the 9 EMA line on the ADA 4-hour chart and the important support level at $0.3157 since the two EMA lines crossed.
With a 1.82% increase in price in the early hours of this morning, ADA's price has as of this writing broken out above this consolidation zone by breaching the 9 and 20 EMA lines on its 4-hour chart.
The price of ADA is currently engaged in a struggle between bulls and bears, with bulls aiming to push it up to the previously mentioned price level of $0.3417 while bears are attempting to push it back down below the 9 and 20 EMA lines on the 4-hour chart.
Because the RSI line is above the RSI SMA line, the RSI indicator on the 4-hour chart indicates that bulls have a little advantage. Also, the RSI line on the ADA 4-hour chart has a small upward slope, which suggests that at press time, there is more purchasing pressure than selling pressure.
This past Sunday, ADA's price broke free from the multi-week bearish trend after posting an incredible 8+% rise at the close of trading. Due to this, the altcoin's price was able to rise over the 9-day EMA line, which had previously crossed below the 20-day EMA line on February 24, 2023, and had since served as a significant barrier to growth for the price of ADA.
This following Monday, ADA's price maintained its upward trend and posted a 4+% increase for the day. Prior to closing slightly above the 20-day EMA line at $0.3433 on Monday, the altcoin's price rose as high as $0.3517.
On Tuesday, bulls attempted one last pump, pushing the price of ADA up to a new daily high of $0.3677. Sadly, investors took profits on Tuesday, which caused the price of ADA to end the day's trading session at $0.3429.
The price of ADA dropped more than 5% the next day after losing the support of the 20-day EMA line. Also, this sent the price of ADA below the 9-day EMA line.
As of the time of publication, technical indications on the daily chart for ADA point to a price increase for ADA within the next 24-48 hours. This bullish hypothesis is supported by the daily RSI indicator, whose line is sloping positively into overbought area. The daily RSI line is also bullishly placed above the daily RSI SMA line.
If the price of ADA closes today's trading session above the 9-day EMA line, the bullish thesis will probably come true, and ADA will advance in the direction of the 20-day EMA line, which is currently located at approximately $0.3388.
On the other hand, if the price of ADA closes today's session below the 9-day EMA level, the price of the cryptocurrency may move in the direction of the crucial support level at $0.3028 during the course of the following 24 to 48 hours.
