Altcoins News

Story: Cardano Drops 4% as Selling Pressure Shows Signs of Cooling

By Julie Binoche

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Cardano's price fell nearly 4% over the past day and sits down 33% for the month. But signs point to easing sell-off momentum across the network.

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The share of ADA supply sitting in profit crashed about 75% since January, dropping from above 33% in mid-January to roughly 8% in early February.

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On the 4-hour timeframe, Cardano forms an inverse head-and-shoulders pattern with a left shoulder, deeper central low, and higher right shoulder.

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Confirmation could come with a new price candle above $0.259.

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Charles Hoskinson, Cardano's creator, stays upbeat about the platform's long-term prospects despite recent price struggles.

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Data from CoinGecko shows Cardano's market cap sits at approximately $9 billion as of February 9. More on this topic: Senate Banking Panel Postpones Crypto Hearing.

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ADA ranks as the seventh-largest cryptocurrency by market cap. The recent price swings haven't really changed its standing among top digital assets, which reflects strong…

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These partnerships aim to leverage Cardano's proof-of-stake protocol for reducing carbon footprints, potentially increasing ADA's appeal to environmentally conscious investors.

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Buyer strength remains the next critical factor though. On-Balance Volume (OBV), which measures whether volume supports price trends, stays on a downward path.

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Key resistance sits near $0.275. A confirmed break here could validate the inverse pattern, with $0.285 as the next obstacle. Clearing that level could pave the way toward $0.

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Trading activity shows mixed signals. Binance, one of the world's largest cryptocurrency exchanges, reported a noticeable uptick in ADA trading volume on February 9.

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On the downside, $0.259 is crucial support.

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A drop below that level could undermine the bullish setup. Full pattern invalidation would occur below $0.220, putting the price back under the pattern's base.

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February 10 marks the upcoming release of Cardano's monthly development update. Investors and developers are eager to gain insights into ongoing projects and future upgrades…

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The development update will likely address Cardano's progress on Hydra, its layer-2 scaling solution designed to process up to one million transactions per second.

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