Cardano in a Bearish Mode at $2.35 – What to Expect
The ADA/USD is trading at $2.35, with a strong bearish tendency. At the time of writing, it had lost 5.19 percent today. The third-largest cryptocurrency, with a market capitalization of $82.8 billion, has recently been under fire. Participants in the Forex market may consider a sell trade below $2.47, with targets of $2.25 and $1.91.
The ADA/USD was trading at $2.35 at the time of writing, with a strong bearish tendency and a loss of -5.19 percent thus far. The ADA/USD closed at $2.5047 the day before, reaching a high of $2.8747, and a low of $2.0316. Amid a recent decrease in Bitcoin prices, the ADA/USD fell to its lowest level since August 18, at just $2.03. In addition, lots of negative news involving Cardano’s network kept the pair gloomy.
The first decentralized exchange, Minswap, has been experiencing serious scaling challenges since the development company behind Cardano, Input-Output, announced the debut of the Plutus smart contract feature on testnet last Thursday. Cardano’s ability to run smart contracts is being questioned as a result.
As already mentioned, Cardano has been under fire recently. Its ecosystem infrastructure was unable to support the most basic decentralized apps without causing immediate scale problems. Users were surprised to learn that the dApp could only handle one transaction per block, which significantly impacted the ADA/USD exchange rate.
The latest flash fall in Bitcoin prices puts even more pressure on the ADA/USD exchange rate. There was no apparent reason at all, for the recent drop in the BTC/USD price. However, there was massive liquidation in El Salvador on Tuesday, which was Bitcoin Day.
It is predicted that the liquidation holdings were primarily long ones, and profit-booking by major BTC investors put heavy pressure on its prices, turning the overall market attitude negative and contributing to the decline in the ADA/USD.
On the other hand, Input-Output Global has announced the long-awaited mainnet launch of the Cardano smart contract platform, Plutus. It has been confirmed that the event will take place on September 12. Plutus will combine Cardano with its HFC technology, according to the business. This news restricted the quick sell-off in ADA/USD on Wednesday.
Cardano (ADA/USD) Technical Analysis
The ADA/USD pair is trading at 2.36, and facing immediate resistance at 2.49. A bullish crossover at this level could lead the ADA/USD price towards the next resistance levels of 2.49 and 2.73. On the lower side, a breakout at 2.25 could extend the selling trend until 1.9170. The RSI is in a sell zone, while the 50 SMA supports a bearish bias in ADA. Thus, let’s consider taking a sell trade below the 2.50 level today. Good luck!
Read more: https://mcc.exchange/2021/09/08/cardano-in-a-bearish-mode-at-2-35-what-to-expect/
Text source: MCC.EXCHANGE
