Due to ADA’S market dominance by the bears, the market is in decline, according to Cardano’s price analysis. Given the sharp drop in price during the last few hours, the bearish momentum has decreased. There was a reversal for two days when the price dropped to $0.3809. Further price reduction is anticipated to persist as long as the short-term trend line moves downward.
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Cardano Analysis
The ADA price fell to a low of $0.37898 due to bearish pressure brought on by the recession. The bearish run was still going strong at the time of writing, with ADA’s price at $0.3809 with a loss of 3.03%.
Market capitalization and 24-hour trading volume also decreased during the recession, falling 3% by pre-crisis lows of $13,169,349,110 and falling the trading volume by 0.3% to $394,573,626, respectively. This loss resulted from investors’ hesitation to invest money and a general lack of faith in the market, worsened by a drop in trading activity.
Technical Analysis
The Bollinger bands have been contracting for some time. The market is likely to be seeing little volatility. The price currently trades narrowly between the upper and lower Bollinger bands at $0.4225 and $0.3536, respectively. Cardano’s Relative Strength Index (RSI) has decreased to 49.15, indicating that the price has further room to fall as it is already in an oversold area.
The bearish crossover has already occurred as the signal line has crossed to the top of the MACD line. As a result of the price decline, on the 24-hour chart, the price of ADA is currently trading below the 9 and 20 EMA lines.
On the ADA/USDT daily chart, the price of ADA is resetting on the line of the 9-day EMA. This level of support might not hold, as ADA’s price has already fallen below it today and is heading toward the level of support at $0.3590.
The price of ADA will break below the support level at $0.3716 and will attempt to do the same with the 20-day EMA line if it finishes today’s trading session below the 9-day EMA.
Four-Hour Analysis
Given that the price of ADA is currently resting on the 9-day EMA line and that the 9 EMA line has crossed below the 20 EMA line on the 4-hour chart of ADA, it is reasonable to assume that the price of ADA will decline during the next 24-48 hours. The ADA’s 4-hour and daily RSI indicators indicate that the price will continue declining over the next 24-48 hours.
The bears have grabbed control of the market, driving ADA/USD all the way down to $0.3809, according to the study of the Cardano price. The price value dropped suddenly, and the bulls haven’t yet regained control. Moreover, to resume positive movement, Cardano must overcome the resistance of around $0.4025. Moreover, additional downward pressure can be anticipated, given the market’s current bearish momentum.
Charles Hoskinson Faces Criticism for CS from Cardano Community
Charles Hoskinson clarified to the Cardano community on February 21 that Contingent Staking is an optional feature. Hoskinson praised the maturity of the Cardano community in handling criticism while clarifying that the feature wasn’t even at the CIP stage.
And the people who hate Cardano call it a cult. Seems pretty grown up to me. CS is an optional hypothetical feature that isn't even at the CIP stage, and we have this rhetoric discounting the last seven years of my life. It's a bittersweet thing watching an ecosystem grow https://t.co/A8XJBMiUBF
— Charles Hoskinson (@IOHK_Charles) February 21, 2023
Hoskinson commended the Cardano environment for being mature enough to disagree with a co-founder while still feeling personally hurt by remarks made about his position. He also noted the ecosystem’s bittersweet growth.
Hoskinson tweeted in response to a Cardano community member calling Hoskinson’s job a “burden” in public. In solidarity with @cardano whale, who announced a Twitter hiatus/break after the Contingent Staking debate, community member @wuffet barren posted the following.
I 'd pick @cardano_whale to speak for the vision of #cardano and represent the #CardanoCommunity over @IOHK_Charles every time.
The former is an asset, the latter is a liability at this point. https://t.co/crq2KXSPPh
— Barren Wuffett 🅰️🥉 (@wuffett_barren) February 20, 2023
Charles Hoskinson suggested contingent staking to bring the cryptocurrency market in line with the SEC’s present regulatory regulations. The United States Securities Exchange Commission (SEC) reached a $30 million settlement with cryptocurrency exchange Kraken for failing to register the staking operations on its platform, which is why the model was raised.
The bitcoin community, meanwhile, has criticized and opposed Hoskinson’s idea. Charles Hoskinson tweeted a thread on February 16 in response to the remarks and attacks directed against CS.
I'm still at a loss reading some of the comments on contingent staking. It's incredible how polarized some people have become to the extent that they can not understand a basic concept and continue to misrepresent it. (1/10)
— Charles Hoskinson (@IOHK_Charles) February 16, 2023
The topic of contingent staking continues to divide the cryptocurrency community. Some people think that CS is a step toward developing a risk-taking attitude and relying on the ability of the regulatory system to safeguard investors. Other people, including @cardano whale, think that CS will enable governments to strangle and/or completely destroy the bitcoin business.
How Is the Cardano Network Secured?
An “environmentally sustainable, verifiably secure” PoS protocol named Ouroboros is used to secure Cardano. The project asserts that Ouroboros is four times more energy efficient than Bitcoin and enhances the security assurances provided by a PoW consensus process while requiring significantly less power.
It is defined as a combination of novel technology, statistically validated mechanics, behavioral psychology, and economic philosophy. Ouroboros’ overarching goal is to promote moral and sustainable progress.
How Many Cardano (ADA) Coins Are There in Circulation?
The maximum supply of ADA is 45 billion. However, only roughly 31 billion were in circulation at the time of writing. In the period from September 2015 to January 2017, there were five rounds of open sales of Cardano tokens. With the current price of Cardano, the pre-launch sale price of $0.0024 represents an over 1000x return.
Immediately after the network’s introduction, IOHK received almost 2.5 billion ADA. In the meantime, Emurgo, a multinational blockchain technology business, was one of the founding members of the Cardano protocol. lt received an additional 2.1 billion ADA. Not to mention, 648 million ADA were donated to the non-profit Cardano Foundation. Whose goal is to advertise the platform and boost adoption.
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