Cardano price rose 25% after crypto crash

The largest cryptocurrency using the proof-of-stake blockchain Cardano is consolidating after a quick rebound from the December crypto crash.

Cardano price rose 25% after crypto crash

Cardano price appears to be building bullish support at current levels. Additionally, the on-chain metrics for Cardano (ADA) suggest the move is feasible.

Cardano price fell 32% between December 2nd and 4th but rebounded above the USD 1,192 support. This retest allowed ADA to recover 15% to its current price of about $ 1.28

That drop comes after 12 weeks of Cardano’s price drop, meaning ADA is currently oversold. As a result, ADA may make a fresh high above $ 1,446, signaling the start of a rally.

This shows that ADA is preparing to retest the next resistance levels at $ 1,606. After overcoming this level, $ 1,749 will be the next hurdle. If ADA retests this level the move up will be 27% of the current level.

While retail data shows strong resistance at around $ 1.70, the volume of social media suggests a lot of retail interest. Cardano’s Social Volume Index is up 832% in the past 24 hours, from 328 to 3059. Interestingly, that increase was last seen in August, just before ADA hit an all-time high.

Eventually, on-chain ADA volume hit a higher high of 3.86 billion and a lower low of 4.33 billion from December 3-4, while Cardano’s price hit a lower low.

The difference between on-chain volume and ADA price shows a bearish divergence, suggesting that Cardano’s price is ready to rally.

As Cardano’s price improves, its failure to make higher high above $ 1,446 shows buyers unwilling or unable to step on the plate. In this case, ADA can retest the $ 1,192 support.

If Cardano’s price hits a lower low below $ 1,192, the bullish thesis will be invalidated and ADA could crash to retest the $ 1.02 support floor again.

About Cardano

Cardano is a public blockchain platform. It’s open source and decentralized, with consensus being reached using the proof-of-stake. It can enable peer-to-peer transactions with its in-house cryptocurrency Ada.

Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson. The development of the project is supervised and monitored by the Cardano Foundation based in Zug, Switzerland. The platform is named after Gerolamo Cardano, while the cryptocurrency itself is named after Ada Lovelace. The Ada subunit is Lovelace; an Ada = 1,000,000 Lovelaces.

It is the largest cryptocurrency using the proof-of-stake blockchain, which is seen as a greener alternative to proof-of-work protocols.

Cardano is financed through an Initial Coin Offering (ICO). The coin was launched with a market capitalization of $ 600 million. It had a market cap of $ 10 billion at the end of 2017 and briefly peaked at $ 33 billion in 2018 before the general tension in the crypto market reduced its value back to $ 10 billion. According to Mashable, Cardano claims that it overcomes the existing problems in the crypto market: most importantly, that Bitcoin is too slow and inflexible, and Ethereum is not secure or not scalable.

IOHK has partnered with universities to research blockchain. In 2017, IOHK helped the University of Edinburgh launch the Blockchain Technology Lab. In 2020, IOHK donated $ 500,000 Ada to the University of Wyoming to help develop blockchain technology.

In 2019, the Georgian Ministry of Education signed a letter of intent with Tbilisi Free University to work with Cardano and Atala to establish a certificate verification system for Georgia.

In 2019, shoe manufacturer New Balance announced a test program on the Cardano blockchain to verify the authenticity of its latest basketball shoes.

IOHK announced a partnership with the Ethiopian government in 2018 to deploy their technology in a variety of industries across the country.

In April 2021, the IOHK and the Ethiopian Ministry of Education announced plans to introduce a recording and identification system on Cardano for the country’s five million students.

In September 2021, Hoskinson began working with electronic dance music DJ Paul Oakenfold to release a full-length album on the Cardano blockchain; Album titled Zombie Lobster.

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