Cardano (ADA) Reverses Losses: Buyers Getting Ready For Uptrend? – FX Leaders
Early on Tuesday, Cardano (ADA) is making its way up cautiously as buyers try to overturn the steep losses the crypto suffered during the market crash over the weekend, even as some fundamental developments offer some hope to investors. At the time of writing, ADA/USD is trading at around $1.46, up by nearly 13% in the past 24 hours.
Sliding down to the sixth position in terms of market cap amid an extended bearish price action, the ADA token is enjoying some support from the news that the number of wallets staking the coin has crossed the 1 million mark. The milestone was achieved on December 5, a day after the tumble in Bitcoin and most cryptocurrencies, with numbers showing how over 1 million delegations had staked 72% of ADA tokens in over 3,100 pools. What’s even more interesting is that it was the leading crypto in staking until recently when key rival Solana overtook it – a remarkable feat considering the staking option only went live following the Alonzo upgrade in September.
ADA Could Find Support From Rising Adoption
Despite the bearish mood towards Cardano in recent weeks, the long term fundamentals and prospects of the blockchain remain strong, especially as it aims to capture higher levels of use cases and versatility than most of its peers. In a recent ‘Fireside Chat’, Cardano Foundation’s CEO, Frederik Gregaard, talked about how the organization would collaborate with universities, education platforms and other blockchain-oriented networks to foster innovation in the area of smart contracts, a strategy which is likely to unveil even more use cases for its technology.
In terms of fundamentals, the ADA token could receive some support in the near term after the first dApp on Cardano, DEX SundaeSwap announced the launch of its testnet during the previous session. The developers have invited users to try out their offering and reveal issues and bugs which can be fixed before the mainnet launch.
Cardano’s dApps Getting Ready to Launch Soon
Other dApps in the Cardano ecosystem are also gearing up to launch soon, with Rocketpad’s IDO Launchpad one of the promising ones to watch out for. Rocketpad will allow the blockchain’s community to pool their resources and fund interesting dApps and projects, supporting the growth and adoption of the Cardano network in the future.
Meanwhile, a cross-chain NFT marketplace based on the network – Verlux, has already filled over 80% of its seed sales, raising $250 million already. Verlux will offer a more decentralized approach in signing on to its platform, giving users the ability to link their wallets and is planning to launch its offering in Q1 2022.
Another Cardano-based DEX, Do.Exchange (DOEX), has launched its IDO on the Kick.io Launchpad in the previous session. In addition to being a truly decentralized, community-driven protocol, DOEX is also planning to expand by forging strategic partnerships with institutional stakeholders and established blockchain projects to drive mainstream adoption.
ADA/USD Technical Analysis
On the H4 chart of ADA/USD, smaller moving averages as well as leading technical indicators MACD and momentum are suggesting a bullish bias. However, the larger timeframe MAs reveal some selling pressure in the market as well.
Cardano’s price has crossed the pivot point at $1.44 and has some way to go until buyers will face the first resistance at $1.69. But for this to happen, we need ADA to get a little higher to increase buyers’ confidence in the crypto.