Categories: Market

What does Cardano (ADA) have to do to get through this difficult time?

Cardano (ADA) enjoyed euphoria for most of 2021. In fact, the hype surrounding smart contracts has caused it to rise 185% in 2 months, marking a new all-time high (ATH). However, this month was particularly disappointing for investors.

Cardano has to break out of the resistance zone

The tight consolidation that began on September 20th doesn’t seem to be over yet. For over a month, ADA has set $ 2.28 and $ 2.07 as strong support and resistance levels, respectively.

The fear is not just about consolidation, but also about the price falling. While ADA tested resistance regularly earlier this month, support was tested twice as often as resistance in the second half of October.

ADA price promotion | Source: TradingView

We can observe that the decline this time has lost more than 15% of all previously profitable Cardano addresses in profitability this month alone.

Investors have almost completely stopped moving their ADA holdings due to this immobility, and as a result, on-chain transactions have decreased significantly. In fact, the number of transactions hasn’t been that low since April 2020, when Cardano was just gaining traction.

Number of Cardano transactions | Source: Intotheblock

What is the movement of ADA investors like?

Even whales and larger investors have paused as their trading volume is at its lowest level in nearly 11 months, below $ 400 million.

Cardano’s enormous transaction volume | Source: Intotheblock

Cardano not only lost profits, but investors as well. Although there are currently more than 17 million addresses, only 17k of them are active on the network. Even when it crashed in May, it didn’t go below 45k.

However, the correlation of ADA with BTC is currently worse at -0.31. If that level sustains, even the potential future rally in Bitcoin will not be able to revive ADA.

Cardano’s correlation with Bitcoin | Source: Intotheblock

The good news, however, is that the network is seeing growing interest from developers as the number of Plutus-based smart contracts has increased 170% this week.

At the moment it’s hard to say what could help Cardano recover as the results of the hype from the Cardano summit were rather disappointing.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Teacher

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025

London, united kingdom, 22nd November 2024, Chainwire

26 minutes ago

Robinhood Exec Dan Gallagher Declines SEC Leadership Role

Robinhood Exec Dan Gallagher declined consideration to lead the SEC, affirming his commitment to Robinhood…

52 minutes ago

Best Cryptos to Buy in November 2024: What Sets Qubetics Apart from Fantom and Immutable X?

Discover why Qubetics, Fantom, and Immutable X are the best cryptos to buy in November…

2 hours ago

Franklin Templeton Digital Assets and Sui Now Join Hands to Strengthen DeFi Strategy

Sui Foundation partners with Franklin Templeton Digital Assets to enhance DeFi solutions on the blockchain.

2 hours ago

Get Insights on BlockDAG’s $136M Presale Success Revealed in Recent AMA—BTC Soars to $99K, Avalanche Trading Volume Surges

See how Bitcoin confronts $99K resistance, Avalanche enjoys a 23% rise, & BDAG achieves a…

2 hours ago

This website uses cookies.