- The Cardano price started the week in the red as sellers continued to dominate the markets.
- ADA has been extremely bearish during recent sessions, with the price having dropped to $1.02.
The Cardano price remained in the red during the ongoing session as markets continued to reel, dropping the price lower. ADA had started the weekend in the red, dropping by nearly 6% on Friday to $1.09. ADA continued to fall over the weekend, dropping below the 20-day SMA on Saturday and falling further by almost 3% on Sunday, ending the weekend at $1.04. The current session sees ADA at $1.02, as sellers look to drive the price lower.
Cardano Price Chart Indicates ADA Could Drop To $1
The Cardano price was quite bullish over the previous weekend, rising by over 7% on Friday. The price fell back on Saturday, falling by 1.23% before recovering on Sunday and pushing past the 20-day SMA, ending the weekend at $1.14. Monday saw ADA remain bullish, rising by nearly 5% and rising to $1.19 before dropping back on Tuesday and falling to $1.17. However, ADA could make a recovery on Wednesday, rising by 1.44% and moving to $1.19.
Image: ADA/USD daily
After registering a recovery on Wednesday, the Cardano price fell back on Thursday, falling by over 3% and dropping to $1.15. ADA continued to drop on Friday, dropping by nearly 6% and falling to $1.09, where the 20-day SMA acted as support. ADA fell below this level over the weekend, falling to $1.07 on Saturday and then to $1.04 on Sunday to end the weekend on a bearish note. The current session sees ADA at $1.02 as the price continues to drop.
We can see that the MACD has flipped to bearish, indicating that we could see the price drop further.
Looking at IntoTheBlock’s IOMAP for the Cardano price, we see that ADA faces strong resistance at around $1.04. At this price level, over 268,000 addresses have sold more than 5 billion ADA.
Looking at the 4-hour Cardano price chart, we can see that ADA had pushed up to $1.24 on the 8th. The price fell back from this level, falling below the 200 and 20-bar SMAs and dropping to $1.15. ADA recovered from this level, pushing back above the two SMAs and rising to $1.20, before dropping below the 20-bar SMA to $1.17, where the 200-bar SMA was acting as support. The price recovered from this level, pushing back above the 20-bar SMA and rising to $1.21 on the 10th. However, after reaching this level, ADA turned bearish and dropped drastically, slipping below all three SMAs and falling to $1.09 on the 12th. ADA continued to fall from this level, dropping to its current level of $1.02.
We can see that the MACD and Parabolic SAR are both bearish, indicating that we could see the price drop further.
Image: ADA/USD 4-hour
Cardano Outpaces Bitcoin, Ethereum in Transaction Volume; Here Is the Distinction
According to data provided by Messari, Cardano is ahead of Bitcoin and Ethereum in terms of transaction activity, clinching first place. As per transaction volume, Cardano overtook Bitcoin and Ethereum at $17.56 billion, while the latter registered 24-hour volumes of $10.55 billion and $5.77 billion, respectively.
Adjusted transaction volume is considered a good way to isolate only the most important transactions. Cardano outperformed Bitcoin and Ethereum in adjusted volumes, with a 24-hour volume of $17.15 billion, compared to the latter's $4.67 billion and $4.25 billion. In comparison to Bitcoin and Ethereum, Cardano users also paid lower fees.
Cardano users only paid $51,985.43 in transaction fees over a recent 24-hour period, compared to $0.51 million and $19.39 million for Bitcoin and Ethereum, respectively.
While critics tend to dismiss Cardano as a "ghost chain," it already has some decentralized applications (dApps) running on top of its blockchain, while the number of wallets holding the ADA token recently crossed the three million mark. Cardano's SundaeSwap has hit a milestone of over 75 million ADA traded after only three weeks on the market.
IOHK, Cardano's parent company, has announced the start of an updated proposal process to increase the per-block memory unit limit for Plutus scripts on the Cardano mainnet. The per-block Plutus memory unit limit will be increased from 50 million to 56 million at the epoch boundary on Feb. 14 as part of IOHK's series of planned modifications and improvements aimed at scaling Cardano.
Plutus is Cardano's smart contracts platform, allowing scripting programs to interface with the blockchain.
Cardano Price Is Expected To Reach These Levels
The Cardano price chart shows that ADA has been extremely bearish during recent sessions. If the current sentiment continues, we could see ADA drop to $1 before staging a recovery.