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Cardano (ADA) has experienced a notable decline over the last seven days and 24 hours. This decline possibly resulted from the recent allegations made by the U.S. Securities and Exchange Commission (SEC) classifying the asset as a security. In the past seven days, ADA has seen a decline of approximately 20%, and within the last 24 hours, it has experienced a decrease of 3.08%.
In response to the SEC’s allegations, the company behind Cardano, Input Output, asserted that ADA is not a security. However, the impact of this response on the future price of Cardano remains uncertain.
While it is challenging to predict the exact price trajectory of Cardano following Input Output’s statement, some technical indicators can offer insights into the token’s potential short-term trend. These indicators analyze historical price patterns, market volume, and other factors to predict future price movements.
Recent Price Action Of Cardano (ADA)
At the beginning of June, ADA was trading at $0.3744. Notably, this price was relatively higher than its current value, and ADA managed to maintain this range for the next five days.
It hit the current month’s high of $0.3817 on June 4, but the following day, there was a notable decline as ADA’s price dropped to $0.352.
Following the drop on June 5, Cardano continued to experience a steady but gradual decline in its price. Over the next nine days, the price of ADA gradually decreased until the current date, June 14. ADA is trading at $0.2748 today, which signifies a further decline from the $0.352 price observed on June 5.
Cardano Price Prediction
Cardano (ADA) shows signs of a bearish trend based on various indicators. The Moving Average Convergence Divergence (MACD) indicator, a line positioned significantly below the signal line, indicates a bearish momentum.
This suggests that the short-term moving average of ADA’s price is well below the long-term moving average, reinforcing the downward pressure on the coin. Furthermore, ADA’s price is notably below the 50-day and 200-day Moving Averages (M.A.).
This signifies that the recent price action of ADA has fallen below the average price observed over these specific periods. The significant deviation from these moving averages further strengthens the case for a bearish trend, indicating that ADA’s price has been on a downward trajectory.
On the other hand, the Relative Strength Index (RSI) reveals an interesting aspect. It shows that ADA is oversold, with the RSI reading significantly lower than the 30 mark.
An RSI below 30 typically suggests that a cryptocurrency is oversold and may be due to a potential upside reversal. This could potentially signal a bullish reversal for ADA.
However, it is crucial to consider other indicators and factors before drawing a definitive conclusion about the future price trend of ADA. Additional factors may include volume analysis, trend lines, support, resistance levels, and any upcoming news or events that could impact ADA’s price.
Latest Developments On Cardano
Renowned Cardano advocate, Dan Gambardello, has recently shared some compelling insights on the future potential of the Cardano blockchain. Despite the recent decline in the price of the ADA token, Gambardello points to the rising Total Value Locked (TVL) on the Cardano network as a positive indicator.
Gambardello reveals that the TVL of ADA has been steadily increasing, reaching approximately 600 million ADA, equivalent to around $120 million. This growth in TVL showcases the increasing utilization and adoption of the Cardano blockchain, even during a period of price decline.
By highlighting this metric, Gambardello draws a parallel to Ethereum, noting that before the 2020 halving, Ethereum had a TVL of $400 million, which ultimately surged to a staggering $129 billion within two years during the bull market.
Cardano blockchain
Gambardello attributes Cardano’s positive outlook to its various cutting-edge products and features. He specifically mentioned the Hydra Head Scalability tool, which was successfully implemented on the Cardano mainnet.
This tool addresses the scalability concerns of blockchain networks, enabling Cardano to process a significantly higher number of transactions per second and enhancing its overall efficiency.
In addition to the Hydra Head Scalability tool, Gambardello highlights the Marlowe smart contract protocol as a significant factor contributing to Cardano’s bright future.
Marlowe enables the creation and execution of smart contracts on the Cardano blockchain, opening doors for innovative decentralized applications (dApps) and expanding the platform’s capabilities using a domain-specific language (DSP).
Furthermore, Gambardello emphasizes the decentralized, scalable, economical, and secure nature of Cardano as critical attributes that position it favorably for future growth and adoption. These qualities resonate with developers, investors, and users, creating a solid foundation for Cardano’s expansion in the blockchain ecosystem.
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