Cardano Foundation’s Focus Areas
Cardano is a blockchain platform that facilitates transactions using its native cryptocurrency ADA and enables developers to build secure, scalable applications. It integrates with several payment systems, and many projects have been developed on the Cardano platform.
To facilitate transactions and participate in governance, Cardano users must purchase ADA. Ownership of ADA tokens determines who can be a slot leader and add new blocks, as well as who gets a share of the transaction fees in those blocks. ADA is also used for voting on software policies like inflation rates, providing holders an incentive to keep their ADA and contribute to its long-term value.
The Cardano Foundation, an independent non-profit based in Switzerland, works to advance Cardano’s infrastructure. In 2023, the Foundation plans to continue focusing on three main areas: operational resilience, education, and promoting the adoption of Cardano.
In 2022, the Foundation helped expand Cardano’s adoption through strategic partnerships with organizations, government agencies, and universities, such as Switzerland for UNHCR, the Georgia National Wine Agency, and the University of Zurich. Frederik Gregaard, CEO of the Cardano Foundation, commented:
“I’m proud of our accomplishments over the past year and look forward to continuing our efforts to support a more decentralized future. 2023 has already seen the launch of our blockchain course’s Alpha Program and preparations for a range of technical initiatives that will connect blockchain with broader society.”
ADA continues to face pressure after Bitcoin recently reached a two-month low, with many cryptocurrencies experiencing their worst weekly decline since the FTX collapse last November. Bitcoin dropped below $25,500 last Thursday, hitting its lowest level since mid-June, partly due to cascading liquidations of leveraged positions. Analysts attribute last week’s drop to news such as the global economic uncertainty.
Surge in Trading and Development Activity
It is important to highlight that the number of whale transactions has surged in recent days. Typically, when whales increase their trading activity, it indicates confidence in the short-term price prospects of the asset.
According to on-chain analytics firm Santiment, Cardano whales have been accumulating ADA during the recent dip, and the number of Cardano wallets holding 100,000 or more ADA tokens has reached a 16-month high of 25,294 this week.
Moreover, Cardano ranked third in development activity, behind Polkadot and its public pre-production environment Kusama. “Development activity” refers to the work completed by a cryptocurrency’s developers on public GitHub repositories over the past 30 days.
While increased trading and development activity are positive signs for ADA, investors should keep in mind that global recession fears and aggressive monetary policies from central banks will continue to affect the broader cryptocurrency market in the coming weeks.
ADA remains a highly speculative investment, and the broader market dynamics are crucial in determining its price. There are many potential risks, so it is advisable for investors to adopt a cautious investment strategy.
ADA tehnička analiza
Since the beginning of this month, ADA has dropped from $0.31 to $0.24, with the current price standing at $0.26. ADA may struggle to maintain a position above the $0.25 level in the coming days, and a break below this level could suggest a potential drop to the $0.22 price point.
Key Support & Resistance Levels for ADA
Based on the chart from April 2023, important support and resistance levels have been marked to help traders gauge ADA’s potential price movements. ADA remains under pressure, but if it manages to surpass resistance at $0.30, the next target could be $0.33 or even $0.35.
The key support level for ADA is at $0.25, and if the price falls below this level, it would trigger a “SELL” signal, opening the path to $0.22.
Factors Supporting ADA Price Growth
On-chain data from Santiment suggests that Cardano whales have bought the recent dip and continue to accumulate ADA despite the ongoing market pressure.
Cardano has ranked third in terms of development activity, and an increase in both trading and development activity is a positive signal for ADA. If ADA can break through resistance at $0.30, the next potential target could be $0.33 or $0.35.
Factors Suggesting ADA’s Downfall
The past few weeks have been negative for ADA, and investors should maintain a defensive approach as the macroeconomic landscape remains uncertain. The critical support level for ADA is $0.25, and if the price dips below this point, the next potential target may be $0.23.
ADA’s price movement is also closely tied to Bitcoin’s price. If Bitcoin falls below $25,000 again, it could have a detrimental impact on ADA’s price.
Mišljenja stručnjaka i analitičara
The cryptocurrency market is currently under pressure, and Bitcoin recently fell below $26,000. Analysts believe ADA might face difficulty in maintaining its current price levels.
Some analysts have linked the recent decline to macroeconomic concerns, while others speculate that a significant bearish event—such as reports of Elon Musk’s SpaceX selling $373 million worth of Bitcoin—could have caused the market drop.
Experts caution that the US central bank may keep interest rates at restrictive levels for a prolonged period, which could negatively impact both stock and cryptocurrency prices.
Some analysts predict that Bitcoin could fall below $20,000, and if that happens, ADA could also drop below $0.20. Bridgewater Associates’ founder Ray Dalio believes that financial markets will be weak for the next five years, and this sentiment likely applies to the cryptocurrency market as well.
