Cardano (ADA) experienced a dip yesterday, reaching a low point of $0.3586. It marks a 40-day low, with the last sighting of this level being on April 28th. Unfortunately, the decline continues as ADA faces a downturn of approximately 1.11% and is currently trading at $0.3653.
Looking at the weekly chart, things don’t look much better, as there is a 5.04% dip to contend with. However, there is some positive news in the form of a 12.05% increase in 24-hour trading volume, reaching a total of $273,582,866.
Cardano’s Strong Fundamentals Fuel Bullish Sentiment Amid Market Downturn
Surprisingly, despite the price drop, most of the market’s orders are actually buys instead of sells. It could mean a potential reversal is coming soon as investors bet on ADA’s long-term potential.
Recent data shows buyers are accumulating ADA at current prices, possibly because they believe the asset is undervalued and poised for growth. Notably, this trend is happening during a market downturn, highlighting Cardano’s strong fundamentals.
Cardano’s steady development and adoption progress have stirred up a bullish sentiment around it, according to a recent tweet by ADA Whale, the network processed close to 100,000 transactions yesterday, including a significant DeFi activity.
The community seems optimistic about Cardano’s potential to scale up to five times that number in the next bull market or even rapidly scale up whenever necessary, especially with Seba’s outlined tools.
However, there’s still work to be done, and the community needs to be ready with a game plan. The good news is that there are some near-term Cardano DeFi launches to look forward to.
Which includes a DEX from AstarterDefiHub, a DEX and bar from VyFiOfficial, a public testnet from TeddySwap, a phase 2 testnet from ENCOINS1, a v2 testnet (in two weeks) from AadaFinance, a testnet from yamfore, an iUSD proposal and vote from liqwid finance, a mainnet from anetaBTC, and a mainnet from SpectrumLabs_.
Meanwhile, in another tweet, ADA Whale pointed out that there’s an alternative future for DeFi, where payments and fixed income become primary use cases rather than fast and cheap speculation on intangible assets.
He believes that DeFi is not the product or use case itself but only a part of the puzzle. This different perspective sometimes puts him at odds with others on the topic.
In ADA Whale’s opinion, Cardano might be unable to facilitate a dydx today, but something like that is better left on centralized rails. Instead, he suggests using Hydra for payments and Cardano for bonds, which might work wonders.
Nevertheless, the impact of these developments on the future price of ADA remains to be seen. But, for now, Cardano’s long-term trend is bearish, predicting a $0.00527 decrease to $0.36284 by May 16th, 2023. In the short term, ADA is neutral, with a slight potential for an increase or decrease in the next few hours.
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