FXOpen
ADA, the native blockchain token of the Cardano network, has dropped to 10th place among the cryptocurrencies with the largest capitalization. Today, according to CoinMarketCap, the capitalization of Cardano (ADA) is USD 20.7 billion.
On the one hand, this happened due to the success of such competitors as:
→ Dogecoin (DOGE) with a capitalization of USD 27.1 billion, approximately +108% since the beginning of the year;
→ Toncoin (TON) with a capitalization of USD 23.7 billion, approximately +193% since the beginning of the year.
On the other hand, the ADA/USD rate behaves weaker than other cryptocurrencies. Year to date, it has dropped by several percent since January 1, 2024. And this is against the background of a bull market, which should greatly confuse investors.
Will Cardano (ADA) be able to strengthen its position in the top 10 cryptocurrencies?
Bulls' hopes may be tied to the approaching Chang update (expected in the second quarter of 2024), which will implement the concept of a self-governing community on the blockchain by introducing delegate representatives (DReps) and community voting to approve the first draft of the Cardano Constitution.
Technical analysis of the ADA/USD chart today shows more bearish signals:
→ the price of ADA/USD moves within the ascending channel;
→ the important level USD 0.6800 again acts as resistance (as shown by the arrows);
→ the price tried to push off from the lower border of the channel, but was unable to gain a foothold above the psychological level of USD 0.6000.
The level of USD 0.5700, reinforced by the lower border of the channel, acts as the most important support in such a situation - its breakdown will open the way to the psychological level of 0.5000 and the minimum of the year in the area of 0.4500.
Given the failure of the ADA/USD price to follow trends in the cryptocurrency bull market in early 2024, such a scenario looks likely.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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