ADA Price Struggles to Top $0.50 Despite Cardano Network Recording 10 Million Native Tokens
Cardano could continue rising if it makes a breakout above $0.50.
Key Takeaways
- Cardano has got 10 million native tokens.
- However, the price of ADA struggles to get above the $0.50 resistance level, trading at $0.46.
- There could, potentially, be a bullish phase if ADA stays above $0.40.
The Cardano network has achieved a milestone by surpassing 10 million native tokens.
Despite this fundamental progress, ADA‘s price has struggled to surpass its $0.50 resistance since April 13 and is now worth about $0.46. Can it finally escape this zone and make a breakout to the upside?
Cardano Fundamentals
These native tokens enable multi-asset transactions directly on the Cardano network. This includes handling unlimited user-defined tokens alongside the primary ADA token without the need for smart contracts. This simplifies the process for developers by reducing complexity and error potential, because the ledger itself manages all token functionalities.
Recent statistics from the IOG weekly report indicate that there are now 10 million native tokens under 120,576 token policies. The network has also recorded 90.8 million transactions and supports 46,698 Plutus scripts. With continued advancements in smart contract technology and anticipated network upgrades like the Chang network upgrade, Cardano is poised for further growth and to attract an even larger user base.
ADA Price Analysis
Cardano has been experiencing a significant downtrend since it peaked at $0.80 on March 14. It dropped sharply to $0.40 on April 13 but quickly recovered to $0.44. The price then increased to $0.53 by April 23, where it met resistance at a descending trendline that began at the March high.
After facing this resistance, the price declined to retest the $0.42 support level and has since shown some recovery. Currently, Cardano is trading at $0.46, having climbed above the descending trendline, which could signify the beginning of a new bullish phase.
ADA is now testing the 0.5 Fibonacci retracement level. With the RSI on the daily chart just above the oversold territory, some consolidation may occur before a potential increase. However, the prevailing trend might continue downward if selling pressure intensifies and prices drop below $0.40.
For Cardano to confirm its breakout momentum, it must keep above $0.40 during this downturn, ideally setting a higher low. A clear signal of an emerging uptrend would be if ADA surpasses $0.60, marking its first higher low and higher high, potentially setting the stage for the price to target $1.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
