Cardano Resists Downward Pressure, Can ADA’s Price Push Bears Away?

Cardano has followed the overall market sentiment. Although trending downwards in market capitalization, the fifth cryptocurrency has been moving at a slower speed than bigger cryptocurrencies.

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Cardano (ADA), trades at $0.48. There has been a 6% loss and 14% in the 7-day and 24-hour charts, respectively. Binance Coin (BNB), Solana(SOL), and XRP both recorded a 30 percent loss during the same period.

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BTC tends to the downside in the 4-hour chart. Source: BTCUSD tradingview

Cardano’s developer Input Output Global (IOG) recently announced two products that could contribute to ADA’s price short-term strength. This company announced a Lace wallet and the deployment a new ADA-specific currency. Ethereum Virtual Machine (EVM).

Lace is aimed at being Cardano’s new light wallet and to help it gain more adoption. The wallet will provide users with “enhanced capability and ease of use”. IOG stated:

IOG is developing Lace ‒ a ‘one-stop-shop’ for all blockchain operations. This platform, which is lightweight and feature-rich, will simplify online finance. Lace, which acts as Web3.0’s portal, will include elements of decentralization.

On the other hand, the EVM was deployed on one of Cardano’s testnet. Developers will be able to migrate or build solidity-based apps with this tool. Sebastian Guillemot, CTO at infrastructure builder dcSpark, believesCardano’s EVM can make the ecosystem a Cosmos and Polkadot type blockchain.

It could allow products to be launched independently of the Cardano mainnet, and create their own dynamics. This could encourage growth in this ecosystem.

Cardano, ADA: With a higher selling pressure, here’s the critical support

One of the key foundations of Cardano’s ecosystem is its promise of growth. Blockchain has just deployed smart contracts but it still isn’t fully realized.

Material Indicators data shows that investors who place asks above $10,000 have experienced an increase in selling pressure (in red). However, in the interim, whales (purple on the chart and brown below) are neutral for a limited time.

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Source: Material Indicators

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According to MI, bids orders are now at $1,5 million below their current levels. In the event of any further downturn, these orders will be critical support.

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