The crypto market is sliding down the rabbit hole and Cardano price is falling along with it. A recent break above $0.40 painted a bullish picture for the smart contracts token that had previously swept lows of $0.24 in December.

The upper limit at $0.40 and the lower limit at $0.24 are currently the points of control for ADA price. Luckily, it is a wide range with bulls expected to engage bears in a fierce tug-of-war for the coming weeks – perhaps months.

Cardano Price Back To Searching For Support Despite Its Weekly Dev Report Release

Cardano price stayed relatively unchanged in 24 hours while doddering at $0.3421 at the time of writing. Before this pullback, ADA traded a new 2023 high at $0.42 but profit booking coupled with pressure from United States regulatory agencies have left the token vulnerable to losses.

The entire crypto market flipped bearish this week following a report about financial woes knocking at the doors of one of the few crypto-friendly banks in the US. Silvergate is believed to be facing a liquidity crunch following the implosion of FTX exchange.

Sam Bankman-Fried’s FTX exchange apparently banked heavily with Silvergate and with the ongoing investigations and regulatory crackdown, investors and companies are cutting ties to protect their interests.

Coinbase, Galaxy Digital, and Kraken are some of the latest clients to stop dealings with Silvergate. As investors reacted to the news surrounding Silvergate, a sell-off brewed resulting in the biggest retracement of the year so far.

Meanwhile, Cardano price lost 14% of its value in 30 days and traded at -15.5% in 14 days. Declines in the last seven days have seen ADA drop by 6.5% to trade at $0.341.

ADA continues to give back its gains despite Input Output Global (IOG) releasing the weekly progress report on Friday. The weekly report conforms to the Cardano Foundation’s transparency policy.

The weekly #Cardano development update is now live on #EssentialCardano.

See the full report for complete details on what the IOG dev teams have been up to and get the latest on the development progress⤵️https://t.co/d928u4xFus

— Input Output (@InputOutputHK) March 3, 2023

The report reckons that 117 projects in total are currently hosted on the Cardano blockchain with 1,209 more in development. There are approximately 7.87 million native tokens in the Cardano ecosystem with the total number of transactions to date reaching 62.2 million.

IOG singled out some key elements in the progress report including milestones like finalizing benchmarking for SECP primitives and nod v.1.35.6. The development team is currently working on adding support for Ledger v.6.0.3 in Daedalus.

More work is being done on the Marlowe Runtime scaling strategy and planning the scope of Hydra work for mainnet compatibility.

Where Is Cardano Price Headed?

The downtrend in Cardano price seems quite unstoppable, especially with the guard rail at $0.35 out of the way. Bulls have lost control over two key levels: The resistance at $0.40 – highlighted by the 200-day Exponential Moving Average (EMA) (line in purple) and the upper falling trendline (continuous line).

Two scenarios are likely to play out here and their determination is expected before the new week. If Cardano price reclaims support at $0.35 – more buyers will buy the dip and push for the resumption of the uptrend above $0.40.

However, a weekly close beneath the same level under $0.35 means ADA may come under more selling pressure. Retail investors who bought ADA at the beginning of the year are hanging in a loose thread, hence any signs of weakness below $0.35 – and they drop the token like a fireball.

Sustained price action below $0.34 would mean there is not enough liquidity in this buyer congestion area to restart the uptrend. It would be prudent to prepare to make new entries as Cardano price sweeps through $0.30.

The pressure mounting on Cardano price can be attributed to increased outflow volume against a shrinking inflow volume. In other words, Cardano lacks the liquidity to battle the bearish pressure as sellers take advantage of volatility spiking in the crypto market.

If push comes to shove and ADA price fails to stop the downtrend at $0.25, traders looking forward to short positions may want to wait until December lows at $0.25 are tested before cashing out.

Nevertheless, it would be prudent to move with the trend knowing that it is pointless to push against the trend. That said, new entries can be taken above $0.35 if ADA recovers immediately or at $0.30 if declines surge.

Losses to $0.25 could be an overstretch for Cardano price at the moment, however, they are not entirely impossible, considering the current regulatory situation in the US and the uncertain economic conditions globally.

Cardano Alternatives to Buy Today

Before buying the Cardano dip, you may want to check out some of the best crypto presales for 2023. InsideBitcoin reviews the list of the best altcoins to buy, bringing to your attention possible options to diversify your crypto portfolio.

Fight Out (FGHT), one of the leading crypto presales for 2023 surpassed the $5 million market. Investors scooping up FGHT tokens before the project lists on the exchanges for the first time on April 5 see potential in the move-to-earn (M2E) sector.

#FightOut is building a one-of-a-kind gaming experience where your real-life training and achievements come to life in a soulbound #NFT avatar!

Battle it out with other players and put your physical skills to the test 💪

Don’t miss out! 🔥⬇️https://t.co/9pikKGRjSd pic.twitter.com/2pQClrnWDT

— Fight Out (@FightOut_) March 1, 2023

Fight Out is an up-and-coming fitness-oriented ecosystem, tapping the power of Web3 to help people lead healthy lifestyles. Users in the ecosystem also earn in an in-app currency called REPS when they complete daily workouts and challenges.

Every user gets a soulbound NFT which can be used as an avatar to access the metaverse. Soulbound because the NFT cannot be sold, but it grows in tandem with the owner’s fitness progress. Fight Out stands out for eliminating the need for expensive NFTs to access the metaverse and provide community members with personalized fitness programs.

Visit Fight Out Presale Now.

Similarly, investors may want to diversify their crypto portfolios with Metropoly (METRO), the first NFT marketplace supporting the global real estate industry. The team at Metropoly is tapping the power of Web3 to channel investment in real estate while eliminating third parties like banks.

Visit Metropoly Now.

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