Retailers Less And Less Interested In ADA – When $ 3?

After the epic ‘Uptober’, the last two months have not looked so good for the broader market. However, some assets like AVAX, LUNA and MATIC have managed to forge their own trajectory to reach new ATH even as the king coin consolidates. However, Cardano (ADA), once a third-placed coin by market cap, has fallen nearly 50% since the ATH record on September 2nd.

After the carnage that ADA witnessed last month, the asset tested lower long-term support at $ 1.22 on Dec. 14. However, with the Hydra scaling solution nearing release, the market is turning in anticipation of a 150% price hike similar to the bull run from July to August.

Can ADA repeat history?

ADA rebounded from a low of $ 1.22 to $ 1.33 on news of the development of a Cardano layer 2 scaling solution. The Hydra team rolled out the second pre-release end-to-end integration of Cardano nodes this week.

Even so, ADA price hasn’t been able to hold that level for long and has now fallen to $ 1.25, a decline of more than 4% in the past 24 hours. Altcoins are down 27% in the past two weeks and are down over 33% in 30 days, with a current market cap of $ 40 billion. ADA’s daily trading volume fell more than 20% to $ 1.2 billion.

After three consecutive months of losses, ADA broke below the 200-day moving average on November 16 – which has served as a major resistance level for the past several months. It also stays below the 50-day MA, which is usually an oversold sign.

Source: TradingView

On the positive side, however, activity on the Cardano blockchain increased significantly in November, with daily active addresses quadrupling to 216k. Monthly transactions also rose 75.8% in November to 4.62 million, an all-time high for the coin every month.

Source: crypto comparison

Is the $ 3 Goal Possible?

Can ADA finally repeat the July-August rally?

The recent low of $ 1.22 was tested after July and a rebound from that level could boost altcoins, but retail excitement is still lacking. Property statistics show that retailers make up the majority of ADA hodlers. A retail-backed rally could be key to the near-term ADA pump.

Source: IntoTheBlock

This suggests that ADA’s 170% increase in price from July to August may not work in the same way this time. First, ADA needs to build a solid position above major SMAs to really embark on a bullish journey.

If Cardano price can rebound and break the $ 1.37 resistance while regaining key previous levels, a break above $ 2 is possible. A short-term visit at $ 3, however, is unlikely, especially given the dwindling retail interest.

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