Cardano extends its weakness on Tuesday, failing to reclaim its 3rd spot in crypto ranking by market cap. That came after the altcoin retraced lower in the past few sessions. Moreover, impressive ecosystem developments seem not enough to drive the token’s value high. While writing this article, ADA/USD trades near $2.12.
Remember, market players remained optimistic that Cardano will enjoy increased adoption since the network announced the much-awaited upgrade to support ‘smart’ contracts last month. Though the crypto project has had several project launches and partnerships since then, it failed to meet market players’ anticipations as ADA did not record massive surges.
Despite the weak price movement, eToro data analysis shows that Cardano (ADA) is the 2nd most traded asset on the social trading platform. In three months, ADA interest increased by 11% and nearly 1,230% yearly among eToro customers.
The latest CoinShares data also shows amplifying interest in the token by institutional investors. Of the $80 million overall inflows towards cryptocurrencies last week, ADA saw institutional inflows worth $2.7 million. That way, Cardano joined the top-5 popular digital tokens.
Latest Fundamental Prints Mixed Cardano Outlook
On the fundamental side, EMURGO, Cardano’s investment branch, declared partnering with Adanian Labs, a pan-African venture studio, to enhance crypto adoption in the region. Such a move may boost the ecosystem’s development by attracting more projects to the blockchain network in the months to come. Though the update might support Cardano’s token as far as the long-term is concerned, it might have no impact on near-term price movements.
However, a Cardano-based NFT protocol, CADALABS Protocol, raised $1 million in an hour after launching its token sale. That can support ADA token as it shows investors interest in the network’s projects. Cardano still struggles since the investor interest seems appealing from a long-term perspective.
Watch These Levels
ADA/USD’s 4Hrs technical outlook shows a massive bearish case among the MAs and the technical indicators momentum and MACD. For now, Cardano still has its price under the $2.15 pivot point, but its nearest $2.06 support still holds. Meanwhile, increased bearishness might see ADA testing this support in the coming sessions. A breakdown can have ADA hitting the vital area at $2 before heading to the support around $1.98.
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