Cardano’s cryptocurrency, ADA, has recently seen a recovery from a price decline, with a 3% increase in the past day and an 8.6% increase in the past month. Trading at $0.8948, ADA has experienced double-digit growth in trading volumes, reaching $856 million in the past 24 hours. The blockchain platform has also been active in the DeFi space, with a total value locked of $476 million according to DefiLlama data. Despite hitting a monthly low of $0.77 on December 20, ADA has shown signs of recovery.
On the daily chart, Cardano appears to be consolidating, with prices fluctuating between $0.99 and $0.77. If ADA fails to maintain critical support around $0.75, it may face tests at $0.60 and $0.45, with the 50 and 200 moving averages also serving as important levels of support. While ADA’s price movements have closely mirrored that of Bitcoin, there are indications of underperformance. The Relative Strength Index (RSI) is at 43 on the daily chart, suggesting potential bearish pressure. However, on the weekly chart, ADA’s price is above the 50 and 200 moving averages, indicating positive momentum.
Cardano’s founder, Charles Hoskinson, has recently criticized the Swiss-based Cardano Foundation for its governance practices and lack of community-driven board elections. Hoskinson has called for the Foundation to consider relocating to jurisdictions such as Abu Dhabi or Wyoming, where governance models promote transparency and community involvement. He has raised concerns about the Foundation’s accountability and its past controversies, advocating for a more inclusive governance framework. The future of ADA reaching $10 largely depends on market sentiment, given its current position as the 9th largest cryptocurrency with a market capitalization of over $31 billion.
In a volatile market where most cryptocurrencies are recovering from corrections, ADA’s price levels will be crucial in determining its future trajectory. The cryptocurrency has been consolidating between key levels, with potential tests at critical support levels. As market sentiment plays a significant role in ADA’s price movements, it will be essential to monitor the Relative Strength Index and moving averages to gauge potential price trends. With Cardano’s founder advocating for governance reforms and calling for a more transparent framework, the cryptocurrency’s future growth may be impacted by changes in the Foundation’s practices and structure.
Despite recent price declines, Cardano’s ADA has shown resilience and potential for recovery, with positive momentum on the weekly chart and a focus on governance reforms. As one of the leading altcoins, Cardano’s price movements are influenced by market sentiment and the performance of other cryptocurrencies, particularly Bitcoin. With ongoing developments in the DeFi space and a growing community around the platform, ADA’s future remains promising, albeit dependent on market dynamics and governance reforms within the Cardano Foundation.
