Cardano Price Forecast – ADA Down 1%, Time to Buy the Dip?
Cardano has continued its sideways movement in the last 24hrs, first seeing a near 2% rise before sharp sell-offs saw the coin twice dip to $0.36.
ADA is now 1% down in the last 24hrs.
The coin found strong support at $0.36, but its Relative Strength Index (RSI) is now just 27 on the 1-day chart – only XRP and XLM have a lower score among the top 100 coins, and it appears to be heading for ‘Weak’ territory.
Trading volume increased nearly 20% to $415 million.
Cardano: Short-Term Opportunity?
Cardano (ADA) fell to a 21-month low last week after the release of the US Consumer Price Index.
While other coins rebounded after the inflation news was revealed, ADA has struggled all weekend and has been ranging between $0.36 and $0.38.
The token, which is down 70% in 2022 and nearly 90% from its all-time high, has its next line of support at $0.35 and its next line of resistance at $0.40.
As CryptoNews revealed on Monday, the coin is showing a falling wedge pattern on the 12-hour chart, and its short-term price appears bullish now that support has continually been found at $0.36.
A spike in trading volume, as has also been seen, tends to support bullish price action.
However, short-term traders must remember that volatility is likely to follow the coin in the coming days, and the coin is still bearish.
Some profit-taking positions could be the 50-day SMA at $0.4178, the 100-day SMA at $0.4455, and the 200-day at $0.4692.
There are also a number of traders who believe Cardano could yet move even further down. The next line of support is $0.30 – should it break that, then some believe $0.25 and even $0.15 could be in play.
Cardano has long been a favorite of longer-term crypto investors, despite the token’s struggle in the last 12 months.
A number of data points reveal that faith in the project remains strong among investors.
A pair of charts from blockchain analysts Messari show that the number of transactions, volume, and on-chain activity has continued to increase in 2022, meaning the protocol is being used more than ever.
Current holders of ADA have also continued to accumulate the token in the face of falling prices.
Holders of 100 to 1,000 tokens now account for 1.15% of the circulating supply, up from 0.92%, while there was a 0.59% increase in holders of between 1,000 and 10,000 coins to 4.95%.
Cardano NFTs have also seen a spike in volume this week, with investors heading to the chain from rival Solana.
The move comes after Magic Eden – the leading Solana NFT marketplace – revealed it would make royalties optional, sparking concern that new connections will not want to launch on the blockchain.
The daily NFT market update is a wild one today👀
— Stocktwits NFTs (@StocktwitsNFTs) October 17, 2022
🚀Cardano breaking into the top 3 with @the_ape_society @DerpBirdsNFT @claymates leading the way!
🐂Hedera gets on the left side of the chart for the first time as @HangryBarboons does 2m HBAR volume!
🦎 @Gekofam back on top! pic.twitter.com/6FczXG3yPE
Of course, as CryptoNews has covered at length in the past, Cardano continues to build out its protocol.
The Vasil hard fork was completed successfully last month, and although it didn’t lead to an increase in price it will certainly make Cardano more attractive to decentralized developers.
Furthermore, a number of other upgrades are on the way, with MuesliSwap successfully integrating Plutus and SundaeSwap now using Hydra.
The latter, a layer 2 scaling solution, will allow for incredible scalability of 1 million transactions per second, far quicker than the likes of Visa (65,000 tps), Solana (35,000 tps), and Ethereum after the Merge (100,000 tps).
Today our team is excited to demo something we've been hard at work on for months:
— Sundae Labs 🍨 (@SundaeSwap) October 14, 2022
SundaeSwap on Hydra! While a ways out, this is an important milestone in not just our scaling journey, but Cardano's as well.
We'll provide detail later, but in the meantime check out our video⬇️ pic.twitter.com/eRyUPT88QL
Cardano, a carbon net-zero organization, is also one of the greenest protocols in the crypto space and has already attracted huge interest from institutional and venture capital investors.
It has long promised huge returns, but the next bull run, whenever that is, could see exponential growth.
Another net-zero project green investors should consider is IMPT, which has already raised more than $5 million in just two weeks of its presale launch.
The project is aiming to help ease the climate crisis by rewarding shoppers with IMPT tokens which can then be converted to carbon credits. The credits act like permits to allow companies to emit greenhouse gas while offsetting their carbon footprints through funding global conservation projects.
IMPT also wants to make carbon credits fully tradeable and open to individuals and companies and keep a scoreboard to track efforts. The likes of Amazon, Microsoft, and LEGO have already partnered with IMPT as affiliate partners.
The first phase of the presale is ongoing with more than 50% of phase 1 tokens sold out. For more information, visit the website or read the IMPT whitepaper.
