Cardano(ADA) Tanks! Hoskinson Banks on Strong Fundamentals

The crypto market has been in a slump for over a month as bulls fail to regain control. Bitcoin trades at $46K, Ethereum at $3.8K. All other altcoins too trade in red today. The slump is credited to Omicron’s fears and the general market trend. 

Cardano Price Analysis

The support at $1.2 is currently being retested by ADA, and it must hold. Otherwise, $1 will be the next major support level. The $1.3 resistance level has not been tested in almost a week, indicating significant bullish weakness. Pressure is building, and any slip lower might result in a severe decline, especially when the market is fearful. 

The trading volume continues to drop. ADA’s lone achievement thus far has been to stay above the critical support level, but with increasing pressure, this might quickly change.

As for the technical indicators, The RSI is reversing its trend and now appears to be bearish. On the daily timeframe, the MACD is positive. The MACD is bearish on smaller timescales, such as 4-hours, and looks to curve back down. 

Founder bullish for ADA as ever

Despite the dropping price of Cardano, according to Charles Hoskinson, the smart contract platform and Ethereum competitor’s fundamentals remain robust.

In a new ask-me-anything session, the Cardano founder and CEO of Input Output Hong Kong (IOHK) examine the numerous ADA KPIs and claims that each one has seen considerable development over the last two years. 

He mentions that Cardano’s use and utility are growing, as is the DApp ecosystem that is forming around it, even venture capital investment. Every indicator that can be measured, whether useful or not, has improved. There hasn’t been a single one that hasn’t, he added.

The Cardano developer emphasizes that ADA’s price movement is mere “noise,” as he feels the seventh-largest cryptocurrency is still one of the digital asset space’s leaders. 

Blockchain updates 

Hoskinson says that major updates are speeding up, and more teams are joining in. More decentralization is taking place at the core, and the emergence of a very significant industry-leading open-source project will be witnessed next year.

He believes it is an open-source bureaucracy and governance done well and built for high involvement from dozens, if not hundreds, of enterprises.