Choppy Trading in ADA Ahead of Cardano Summit This Weekend
Aiswarya Gopan • 2 min read
Cardano (ADA) is starting Friday on a somewhat bearish note, sliding under the $2.30 mark amid a cautious market sentiment as investors wait to see if market leader Bitcoin can crack the key $45,000 level. At the time of writing, ADA/USD is trading around $2.28.
This week started on a bearish note in the cryptocurrency market as investor mood was soured by the Evergrande crisis. Global investors worried about the possible fallout of China’s leading property developer defaulting on its mountain of debt and stayed away from cryptocurrencies and other riskier instruments. However, the bearish mood started easing during the previous session as the concerns started fading, bringing back buyers into cryptos. The positive mood remains weak as we approach the end of the week as crypto traders wait to see how Bitcoin’s price will fare as it approaches a key level of $45,000.
While the market sentiment remains unclear, Cardano traders are also cautiously awaiting the upcoming Cardano Summit before making new moves in the world’s third largest cryptocurrency. The online community is waiting for the Cardano Foundation to unveil new partnerships it has forged following the rollout of the smart contracts feature and the major Alonzo upgrade.
On the fundamentals front, ADA could enjoy some support from IOHK – the firm behind the blockchain, announcing an upcoming store for dApps on the network – Plutus dAppStore. The storefront will provide a platform for developers to upload their decentralized applications on Cardano’s ecosystem and offer users an easier way to access these certified dApps, possibly increasing their usage.
Meanwhile, former Goldman Sachs executive and the current founder of Real Vision and Global Macro Investor Raoul Pal recently confirmed that he had invested in Cardano. In a recent interview with Bitboy Crypto, Pal offered a bullish outlook on ADA, stating that he was waiting to see the crypto gain traction as more developers build applications on its ecosystem and continue to drive its adoption among users.
Key Levels to Watch
On the H4 price chart of ADA/USD, smaller timeframe moving averages as well as the MACD suggest a bullish bias. Howver, the larger MAs as well as leading technical indicators momentum and Stochastics RSI are currently flashing ‘sell’ signs.
Cardano’s price has some way to go to test the pivot point at $2.37 and a rise above this can confirm a bullish trend. However, if more sellers enter at this point, we can see the price sliding lower towards the immediate support which sits at $2.16.