Cardano Resists Downward Pressure, Can ADA Price Push The Bears Away?
Cardano (ADA) follows general sentiment in the market. The fifth-largest cryptocurrency in terms of market cap is trending downward, but at a slower pace than larger cryptocurrencies.
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At the time of writing, Cardano (ADA) is trading at $0.48 with losses of 6% and 14% in the 24-hour and 7-day charts, respectively. The second crypto by market cap Ethereum (ETH) records a 30% loss over the same period, Binance Coin (BNB) a 24% loss, Solana (SOL) a 24% loss and XRP a 18% loss over the past 7 to dawn .
BTC trends down on the 4 hour chart. Source: BTCUSD trading summary
Cardano’s developer Input Output Global (IOG) recently announced two products that could add to ADA’s price in the near term. The company unveiled a new wallet called laceand the deployment of a new Ethereum Virtual Machine (EVM).
Lace aims to become Cardano’s new lightweight wallet and to gain more acceptance. The wallet offers users “enhanced capabilities and ease of use”. IOG said:
IOG is developing Lace ‒ a ‘one-stop-shop’ for all blockchain operations. This new platform will be feature-packed, yet lightweight and streamline online finances. Lace acts as a portal to Web3.0 and includes elements of true decentralization.
On the other hand, the EVM was deployed on one of Cardano’s testnets. This tool allows developers to build or migrate their solidity-based applications. Sebastian Guillemot, CTO at infrastructure builder dcSpark, believes the EVM on Cardano allows the ecosystem to become a Cosmos or Polkadot like blockchain.
This allows products to be launched independently of the Cardano mainnet and develop their own dynamics. In the future, this could promote growth in this ecosystem.
Cardano (ADA) with increased sales pressure, here’s the critical support
The promise of growth in the Cardano ecosystem has been one of its most important foundations. The blockchain has recently implemented its smart contract capabilities, but has yet to see it come to full fruition.
Data from Material Indicators (MI) records an increase in selling pressure from investors with demand orders over $10,000 (in red in the chart below). Meanwhile, the whales (purple and brown on the map below) have remained neutral, at least for a short period of time.
Source: Material Indicators
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Below the current level, there is more than $1.5 million in bidding orders, as MI shows. These orders should serve as critical support in the event of further downward pressure.