Coin Edition -
- ADA’s price printed a 1.79% loss in the last 24 hours, according to CoinMarketCap.
- Technical indicators on ADA’s 4-hour chart are flagging bearish at press time.
- The altcoin’s price needs to overcome the current resistance level before it can continue to rise.
In a recent interview, Charles Hoskinson, the founder and CEO of Cardano, shared his thoughts on the comparison between Cardano (ADA) and Ethereum (ETH), a platform he had previously co-founded. While acknowledging ETH’s current position as the largest Proof of Stake (PoS) blockchain by market capitalization, Hoskinson highlighted a unique feature of ADA that gives it a competitive edge.
According to Hoskinson, one significant advantage that ADA has over ETH lies in the number of unique wallets participating in ADA’s staking process. Hoskinson pointed out that there are currently more than 1.2 million unique wallets involved in ADA’s staking process, while ETH has only 88,400. This discrepancy, in Hoskinson’s view, demonstrates the level of community participation and engagement on the Cardano network.
Staking is a process that allows holders of a particular cryptocurrency to earn rewards by locking up their tokens and participating in network validation. It is a crucial component of Proof of Stake blockchains like Cardano and Ethereum. The more participants a blockchain has in its staking process, the more decentralized and secure it becomes.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 1.79%, taking its price down to $0.3895 at press time. The Ethereum-killer’s market cap currently stands at $13.537 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $277.949 million, following a 24-hour decrease of 24.45%. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3859. The altcoin’s daily high stands at $0.3996.
The 24-hour decrease in ADA’s price has chipped away at its positive weekly performance. Nevertheless, the altcoin’s weekly price performance remains in the green at +3.29% at press time.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price recently dropped below the minor support level at around $0.3902, flipping the level into resistance. In addition to dropping below this price level, ADA’s price is currently also trading below the 9 and 20 EMA lines on its 4-hour chart after dropping below the two lines yesterday afternoon.
ADA’s price drop may not be over yet, as the 9 EMA line on the 4-hour chart is on the verge of crossing bearishly below the 20 EMA line on the 4-hour chart. Should this bearish cross occur between the two EMA lines, the altcoin’s price may make a move toward the support level at around $0.3820 in the next 24-48 hours.
The RSI indicator on the 4-hour chart is also flagging bearish at press time, with the RSI line positioned below the RSI SMA line and the RSI line sloped towards the oversold territory.
Daily chart for ADA/USDT (Source: TradingView)
The price of ADA is still in an ascending price channel on its daily chart, which is a positive sign for the altcoin. This suggests that ADA’s price will continue to rise in the next 24-48 hours. There is, however, an obstacle in ADA’s way at press time which is the resistance level at around $0.3926.
If ADA’s price fails to close above this level in the next 24-48 hours, then it will either consolidate or correct in the coming days. On the other hand, if ADA’s price is able to close above this price level in the next 24-48 hours, then ADA’s price has a clear path towards $0.4210, which it will make a move towards in the days that follow.
Traders and investors will want to wait for ADA’s price to close above the aforementioned level at $0.3926 before entering into a long position for the Ethereum-killer, given that there is still a chance that the bearishness on ADA’s 4-hour chart may continue in the next 24-48 hours.
An early indication of ADA’s price entering into a correction phase will be if ADA’s price closes today below the 9-day EMA line. Should this happen, ADA’s price will likely drop to the support level at $0.3720, where it will either rebound or continue to drop.
A rebound from this support level will most likely see ADA’s price consolidate between $0.3720 and $0.3926 in the next 24-48 hours.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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