Cardano price remains in range on Friday despite gaining 0.65% to trade at 0.4615. ADA’s downtrend stretching back to December 2023 is mostly attributed to a decline in interest from whales and rising competition from the likes of Toncoin and Dogecoin. ADA has lost 1.14% of its value in the last week, a decline from 20.6% the previous week, signaling a potential recovery.
With the Bitcoin halving event set to take place any moment this week, the sentiment around Cardano is damp. While the current consolidation provides an opportunity to buy the dip, it also exposes ADA to the risk of being overtaken by a host of crypto assets, including meme coins with better sentiment. Furthermore, the Bitcoin halving event is historically followed by a decline in BTC prices before a rally. Chances of that repeating itself are high, especially considering that Bitcoin already hit a new all-time high some weeks back. Therefore, if the current BTC profit taking persists, the decline in prices could drag the rest of the crypto market with it, to ADA’s detriment.
Cardano’s community currently feels disgruntled by the token’s performance, but many are also hopeful for a turnaround, based on a series of improvements scheduled for this year. Key among these is the Chang hard fork, which is scheduled for the second quarter of 2024 and is expected to improve the network’s scalability and transaction efficiency. Also, the transition to full community governance is expected to attract more interest in holding ADA.
Technical analysis
The momentum on ADAUSD currently signals control by the buyers. The upside will likely continue if the price remains above 0.4525, with the first resistance likely to come at 0.4695. A move beyond that mark could build the momentum to test 0.4874. On the other hand, the bears will likely be in control if the price moves below 0.4250, with support established at 0.4345. A continuation of the bearish control could breach the support and move ADAUSD further down to test 0.4132.
