As a researcher with years of experience in the ever-evolving crypto market, I have witnessed numerous highs and lows, bull runs, and bear markets. The recent 3.5% surge in Cardano’s price to $0.336, while significant, has left me cautiously optimistic.
Cardano price is up 3.5% during the Sunday market uptick to trade at $0.336 while boosting a market cap of $12.7 Billion. A tall green candle reflects renewed buying pressure for ADA holders, but the sustainability of Bitcoin’s price below $55000 could prolong the correction for the altcoin market. Can Cardano buyers invalidate this bearish thesis?
Will Cardano Price Hold $0.3 Support?
Over the past six months, the cost of Cardano dropped from approximately $0.81 to $0.334, representing a 58.7% reduction on the daily chart. With September’s market climate suggesting an extended decline, the ADA price appears ready to challenge its $3 support. Here are three reasons why this level may be defended by buyers:
Charles Hoskinson Opposes ADA Burn Proposal
After the implementation of the Chang hard fork, there was a suggestion within the Cardano community to destroy (or ‘burn’) approximately 1.5 billion ADA tokens, which ignited a discussion among its participants. Some found this concept appealing, while others thought it could lead to negative consequences.
As an analyst, I’m sharing my perspective based on Charles Hoskinson’s latest statement. Contrary to suggestions of burning the Cardano network’s treasury funds, Hoskinson appears to firmly oppose this idea. In his own words, the treasury isn’t a hoard of tokens that magically appeared; instead, it was accumulated from taxes levied on block production and transactions within the network.
This setup guarantees that the resources reflect the collective endeavor, as everyone contributes within this system, according to Hoskinson’s emphasis.
The entire treasury comes from people building blocks and economic activity. You are effectively stealing from every SPO and ADA holder if you burn the treasury.
According to Hoskinson, he is dedicated to ensuring the continuation of a fair environment within our community and intends to use the treasury resources to seek out more chances for Cardano’s expansion.
Cardano Active Addresses Surge to Five-Month High
Over the past week, the value of Cardano has remained stable near the $0.32 mark, but there’s a noteworthy development brewing beneath the surface. Although the price movement may seem uneventful, data from Santiment reveals that the number of active addresses on the Cardano network reached an impressive peak of 54,780 on September 5th – the highest in five months.
This spike in activity suggests growing network participation, a crucial factor that often drives demand pressure for ADA.
Cardano Price Set to Retest Multi-Month Support
The graph for Cardano’s price indicates two guiding trendlines that have been shaping the market fluctuations of ADA. Since May 2024, an upper trendline has limited the purchasing activity, while a lower support line has served as a vital area for accumulation since June 2023.
If the negative trend continues, the price of ADA could drop approximately 12% and touch the lower support trendline at around $0.3. Previously, when it tested the upward-sloping trendline, Cardano experienced a surge of nearly 238%, reaching a peak of $0.81.
Therefore, it’s likely that the price of Cardano will bounce back from its support at $0.3 and potentially reach a goal of around $0.51.
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2024-09-08 18:38