Cardano (ADA) Getting Ready to Test Support Despite Hoskinson’s Reassurances? – FX
Cardano (ADA) extends its losses into Tuesday, with panic selling causing its price to crash under the $2 level, and it looks like the price is yet to find a bottom, despite Co-founder Charles Hoskinson’s efforts to rally support for his cryptocurrency. At the time of writing, ADA/USD is trading at around $1.77.
Cardano’s Co-founder Hoskinson Urges Investors to Focus on Fundamentals
Hoskinson talked about how investors should not resort to sell-off amid a bearish market sentiment towards cryptocurrencies and hold ADA through the current mood, as the fundamentals remain strong and offer potential for growth. He stressed on the need for investors to have a long term vision in their holdings of cryptocurrencies instead of going with the flow and driving erratic price action, as we have seen lately, especially in the world of memecoins like Dogecoin and Shiba Inu.
According to Hoskinson, “If you look at a five year, a ten year, a fifteen year, a twenty year package, we really feel that there’s a strong possibility Cardano could be the backend of many nation states.” He went on to talk about how his blockchain will go on to handle billions of transactions daily and see widespread mainstream adoption by governments, offering versatile use cases, which could make it “the biggest preserver of human rights the world has seen.”
Other Fundamentals That Can Support ADA This Week
While Hoskinson talks about why investors should maintain a bullish outlook about ADA in the long term, there may be some factors driving a reversal in price action in the short term too. Later this week, Cardano will be listed on leading Europe-based crypto exchange Bitstamp, which could drive up buying activity in the coin.
The highlight of this week, however, will be the Cardano360 November edition, scheduled for November 25. Input Output, the firm behind the development of the blockchain, will share all the latest updates and developments taking place within the ecosystem and offer some more reasons for a rebound in investor confidence in the world’s sixth largest cryptocurrency by market cap.
According to a recent report by Bacancy, Cardano was the fifth most searched cryptocurrency in the US through 2021 so far. Coming in behind market leaders Bitcoin and Ethereum, followed by memecoins Dogecoin and Shiba Inu, Cardano raked up an average of 704k monthly searches, and offers immense potential in terms of usability unlike the joke-based cryptocurrencies which rally on hype.
ADA/USD Technical Analysis
Technical analysis of the 4-hour chart of ADA/USD reveals a strong bearish bias among moving averages along with the MACD. Although, the momentum indicator points to some buying interest in the market as well.
Cardano’s price is holding under the pivot point at $1.87 but staying above the immediate support at $1.66. We need to keep a close watch on the support level as an uptick in selling interest can see this level being tested in the near-term.