The recent development in the XRP lawsuit was exciting, and investors made significant gains last week. However, these gains did not prove to be sustainable as ADA Coin and others began to retrace their gains. So, what can we expect in the coming days? How low will ADA Coin drop according to investors?
The pullback of Cardano continued towards the $0.30 breakout level. Typically, such a deep correction delays the start of the next leg of the upward movement. However, the moving averages are completing a bullish crossover, and the RSI is in the positive zone, indicating that bulls have a slight advantage. If the price turns up from the current level, buyers will once again attempt to push the ADA/USDT pair towards the $0.38 general resistance.
Bulls face a tough task. Firstly, they will attempt to overcome the resistance at $0.34. It is also likely that bears will create resistance at the $0.36 and $0.39 regions. Cardano (ADA) is still fighting to hold the $0.3 support. However, as long as negative sentiment continues in the BTC market, closing below this level becomes a stronger possibility.
In bear markets, many layer1 projects have strived for further development. They have introduced new products, features, and technical updates. However, Cardano has been growing at a much slower pace compared to others. The slow progress of network upgrades has prevented developers from seeing an opportunity in this area for now. Moreover, the underwhelming demand for DJED has been a major disappointment. This has led to comments suggesting that the Cardano bubble is deflating.
In the coming months, the network needs to attract users with Hydra and other updates. On the other hand, there is a need for more applications that will benefit these users. Despite gaining smart contract capabilities two years ago, Cardano hosts significantly fewer applications compared to its younger rivals. It has failed to create popular applications that are heavily used, negatively impacting its future.
The lack of interest in DJED also diminishes hopes for ADA Coin. Increased interest in over-collateralized algo stablecoins, similar to LUNA/UST, could create significant upward pressure on ADA Coin’s price.
At the time of writing, the Bitcoin price continues to find buyers below $30,000.