Cardano prices continued with their resurgence on Monday, gaining 3.60% to trade at $0.610 at 9.30 UTC. ADAUSD is on its third consecutive day of gains, dusting itself up after its recent troubles that saw it lose 9.4% of its value last week. Nonetheless, the crypto is still on the downtrend channel on the weekly chart. Furthermore, ADAUSD declined by 0.81% in March at a time when most crypto assets gained. For context, Bitcoin gained 16.55%, while Ethereum rose by 9.13%. ADA’s detachment from the rest of the crypto market could work against it as the Bitcoin halving event draws near.
In recent news, Cardano Founder, Charles Hoskinson engaged in a spat with popular crypto influencer Ben Armstrong over the latter’s comments that ADA is “dead”. Armstrong went on to question the project’s ability to expand its user bases and attract new investors in light of tightening competition and relatively slow progress compared to other blockchain ecosystems. While Hoskinson denied Armstrong’s assertions, the recent price declines underline Cardano’s struggles in the eyes of the crypto community amidst an overall market rally.
Also, Grayscale Investments, the world’s largest digital assets, removed Cardano from its Digital Large Cap Fund (OTCQX: GDLC) on April 3. While ADA consisted of only 1.26% of the fund’s holdings at the time, dumping by such a large investment fund could have far-reaching consequences on investor confidence in the asset. Nonetheless, there’s some positive news to look forward to as the project prepares to roll out the Chang hard fork, set for Q2 2024, which, according to Hoskinson, will offer “the best path” to scalability, governance, and innovation.
Technical analysis
The momentum on ADAUSD favours further upside, as indicated by the RSI indicator. The pair will, however, need to stay above 0.604 to keep the buyers in control. Furthermore, they will encounter resistance at 0.612, but a move above that level will favour further advances to test 0.619. However, a move below 0.604 will signal control by the sellers, with the first support coming at 0.595. Continuation of control by the sellers at that level will breach below that level and potentially test 0.588 in extension.
