ADA, the cryptocurrency powering blockchain platform Cardano, is recovering from a recent price decline. Data from CoinMarketCap shows that the cryptocurrency jumped 3% and 8.6% in the past day and month, respectively.
At the time of publication, ADA traded at $0.8948, with double-digit growth in trading volumes. In the past 24 hours alone, Cardano’s trading volumes were up 23% to $856 million.
DeFi Activities
Cardano has also experienced extensive activity in the Decentralized Finance (DeFi) space. According to Data from DefiLlama, the blockchain network’s total value locked is currently at $476 million. ADA dropped to a monthly low of $.0.77 on December 20, with trading volumes falling to nearly $3 billion.
On the daily chart, Cardano is consolidating, and prices below these levels could signal more bearish pressure. For nearly a week, ADA has been in a consolidation, trading between $0.99 and $0.77.
Considering the current state of the market, where most cryptocurrencies are attempting to recover from a correction, ADA could remain a consolidation unless the market sentiment changes. Still, on the daily chart, the Relative Strength Index (RSI) is at 43, near the oversold zone.
On the weekly chart, ADA price is above the 50 and 200 moving averages amid a steep price correction. RSI is at 63, meaning the price momentum is generally positive and is not yet at the overbought zone.
Key Price Levels
If ADA fails to hold critical support around $0.75, its next major test could come near $0.60 and $0.45. The 50 and 200 moving averages are also important levels at which price could test support. Cardano has mirrored Bitcoin’s movements closely but shows signs of underperformance.
Amid the market turbulence, Cardano’s founder, Charles Hoskinson, has turned his focus to governance. Criticizing the Swiss-based Cardano Foundation in a post on social media platform X, Hoskinson said that it lacks community-driven board elections and called for a structural overhaul.
In a Dec. 18 post, Hoskinson urged the Foundation to relocate to jurisdictions like Abu Dhabi or Wyoming, where governance models encourage transparency and community participation. He questioned the board’s accountability and its connection to past controversies, calling for a more inclusive framework.
As to whether ADA will reach $10 largely depends on market sentiment. The cryptocurrency currently ranks 9th with a market capitalization of more than $31 billion. As one of the leading altcoins, Cardano's price has largely been driven by the sentiment around other top altcoins, as well as the price of the leading cryptocurrency, Bitcoin.
This article was written by Jared Kirui at www.financemagnates.com.
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