Cardano Price Prediction: In the past 24 hours, Cardano (ADA) has experienced an 8% price surge, reaching $0.282965. This upward movement provides a partial correction to the significant fall it faced over the weekend. The altcoin’s value had plummeted to as low as $0.238477 following regulatory actions against Binance by the SEC. Market makers withdrawing liquidity from Binance and Robinhood’s delisting of the altcoin contributed to ADA’s decline. With a 25% decrease in the past week and a meager 15% increase since the beginning of the year, Cardano’s future recovery remains uncertain.
ADA’s Weakness and Indicators: Cardano’s current chart and indicators reflect a period of weakness. The coin’s 30-day moving average (yellow) dropped steeply below its 200-day average (blue) during the weekend, highlighting the downtrend.
Additionally, the altcoin’s relative strength index (RSI) slipped under 20 over the weekend, although it has begun to rise again. However, the RSI still lingers below 50, indicating a potential struggle for ADA to regain momentum in the coming days.
Loss of Support Levels and Selling Pressure
Further intensifying concerns is the fact that ADA breached important support levels during the weekend, falling below $0.275 and subsequently $0.250. These downward moves may undermine the altcoin’s stability, making it susceptible to additional selling pressure in the upcoming week.
SEC’s Impact on ADA’s Volatility
The recent setback for ADA is primarily attributed to the SEC classifying it as a security in their legal actions against Coinbase and Binance. This classification not only caused ADA’s price to drop initially but also resulted in Robinhood delisting the cryptocurrency. Similar actions from other US-based exchanges may follow, potentially leading to further declines for Cardano.
Risk Factors for ADA
Although ADA’s current situation poses risks, it is worth noting that the SEC’s designation of the altcoin as a security does not necessarily mean it is one. The ongoing Ripple-SEC case demonstrates that regulatory claims can be disputed successfully, as Ripple challenges the classification of XRP as a security. Once the Coinbase and Binance cases are resolved, Cardano could potentially return to its previous position.
Strong Fundamentals and Development
From a fundamental perspective, Cardano remains in a favorable position. As a network, Cardano continues its steady growth and currently stands as the fifth-most used blockchain. With approximately 129 projects running on its blockchain and over 1,200 building on it, Cardano’s development appears robust. Assuming the legal ambiguity surrounding ADA in the US is resolved promptly, the altcoin could experience a significant recovery in the near future.
Whales and Future Outlook
Despite no clear evidence of whales acquiring ADA in substantial quantities, the recent bounce suggests there are buyers seeking to capitalize on its discounted price. However, it may take several months or longer for ADA to regain its former highs, leaving traders searching for quicker returns elsewhere.
Altcoins with Potential
While Cardano’s recovery might take time, there are alternative cryptocurrencies that exhibit significant potential for substantial gains in the near future. One notable example is ecoterra (ECOTERRA), a presale token that has already raised over $5 million. Launching in the second half of 2023, ecoterra will offer a recycle-to-earn platform, incentivizing users to recycle household waste at designated points. Participants will receive ECOTERRA tokens and NFTs for their recycling efforts, promoting environmentally friendly behavior and active involvement in the green economy. Additionally, users can earn rewards for generating their own green energy, and the NFT-based carbon offsets they obtain can be traded on the platform’s marketplace. With growing interest in ESG investment and climate change, the project’s success in fundraising is unsurprising. Those interested can participate in the presale by visiting the official ecoterra website, with the current cost of 1 ECOTERRA at $0.00925, set to rise to $0.01 in 16 days. Investors should act promptly, as the listing on exchanges in the coming months may drive the price higher.
In conclusions: Cardano’s recent price recovery offers a glimmer of hope after a significant dip. However, the altcoin faces uncertainty due to regulatory actions and potential delistings by US-based exchanges. While the current legal status of ADA remains ambiguous, the project’s strong fundamentals and development present a positive outlook for future recovery. In the meantime, traders seeking quicker returns may explore opportunities in promising altcoins like ecoterra. It is crucial to remain attentive to market developments and regulatory outcomes to make informed investment decisions.