Cardano (ADA) Price Right at Pivot Point: Which Way Next?
Cardano (ADA) is starting Monday on a bullish note, making gains as investor interest returns after it reclaims the third ranking among cryptocurrencies in terms of market cap. At the time of writing, ADA/USD is trading at around $
Over the past few weeks, we have seen price action in Cardano weaken following heavy selloffs after the release of the much awaited Alonzo hard fork. Since then, even the Cardano Summit which saw the blockchain announce several exciting partnerships with projects across various sectors failed to drive bulls back to the crypto amid a cautious mood in the market after China came down harder against crypto transactions.
Cardano’s Hoskinson Back From Break – Will it Drive Volatility?
However, volatility is slowly picking up once again as its co-founder Charles Hoskinson gets ready to visit African nations to drive up adoption of Cardano’s blockchain among businesses and sign on new partnerships. He announced his upcoming visit via a Twitter update after having been off social media for the past couple of weeks, and ADA holders are looking forward to more positive fundamentals that can send investors back into the token again.
As the CEO of IOHK – the firm behind the development of the blockchain, Hoskinson has played an important role in rallying the Cardano community over the past few months, updating users about upcoming developments, sharing his take on how he believes crypto and blockchain can transform the world, and engaging with the community via AMA sessions. This has been a key observation shared by crypto strategist and trader Alex Krüger who insists that the high levels of social engagement are one of the biggest reasons why Cardano attracts the attention of new crypto investors in the market.
Promising Fundamental Developments That Can Support ADA
Meanwhile, on the fundamentals front, Cardano’s partnership with eSports and gaming platform Rival could bring about increased activity in the NFT space, with Rival leveraging the blockchain to distribute NFTs from its sports teams. Rival’s platform supports teams and players from the EPL, NFL and even the NBA, and the partnership could be a golden opportunity to capture the attention of nearly three billion gamers all around the world.
Another interesting partnership that can lend support to the value of ADA in the coming sessions is Cardano-based Defi project Ardana’s partnership with Elrond to build a bridge infrastructure that will enable cross-chain asset transfers between the two blockchains. The bridge will allow for token transfers between Elrond and Cardano compatible chains, which will then go on to provide cross-chain smart contract functionality and bring about higher scalability for DeFi projects in the ecosystem.
Key Levels to Watch
On the 4-hour price chart of ADA/USD, most of the moving averages along with leading technical indicators MACD and momentum are exhibiting a strong bearish bias. Cardano’s price finds itself right on the pivot point at $2.22, making it a very interesting time to keep an eye on it.
An uptick in buying pressure can take ADA higher, towards testing the resistance at $2.33. However, if more sellers jump in the game now, the price could break down under this level and make its way towards support at $2.07.