The morning sessions on Wednesday witnessed Cardano (ADA) slipping to the $2 level before bouncing back slightly. Meanwhile, the brief slide had Cardano dropping one position beneath its ranking by Coinmarketcap. While writing this content, ADA/USD trades near $2.00 after losing more than 4% over the previous 24 hours.
Cardano’s move might depict possible profit-taking by investors after the coin crossed the vital zone at $2 some days ago. As much ADA’s colossal bullishness receives support from massive fundamentals, the recent drop by Bitcoin beneath $45,000 might have scared investors. Keep in mind that the current reactions by Bitcoin have seen sell-offs dominating the crypto space.
Meanwhile, the recent report by CoinShares might offer additional support for ADA to register upside moves. The reports state that though digital asset investment instruments had outflows for six consecutive weeks, Cardano-related products saw inflows amounting to $1.3 million during the same time. For now, the crypto appears to see increased institutional investors’ interest due to the awaited Alonzo upgrade. The update will launch ‘smart’ contracts on the network.
For now, crypto enthusiasts remain optimistic as far as Cardano is concerned. Some of them anticipate another ATH above $2.45 in the weeks to come. However, cryptocurrency fans need to remain optimistic about the entire financial sector for additional support to take Cardano high.
Levels to Watch
The MACD and MAs exhibit bearishness on the ADA/USD 4-Hr chart. Meanwhile, the large moving averages and the momentum shows buying activities dominating the network.
For now, ADA trades over the pivot level at $1.93, but increased bearishness might see the coin testing its immediate support around $1.62. However, if the network attracts buyer’s activities, Cardano might surge above its ATH with further actions taking ADA towards its initial support level near $2.48.
The positive sentiments in the platform show that Cardano has a clear path to rally high. The project attracts investors due to its anticipated platform upgrade.
At this publication, Cardano’s ADA in supply amount to 45,000,000,000. Meanwhile, 71% of them are already circulating in the market. The declining supply and magnified demand put the coin in a clear path for upside movements.
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