Cardano (ADA) price has been in the spotlight lately and not all the attention is positive. In simple terms, ADA price is falling due to increased selling pressure. One of the factors contributing to this trend is Cardano’s significant withdrawal from smart contracts.
With this, altcoinstill has significant growth potential with optimistic developments expected for its network.
According to a recent video from Crypto Capital Venture, ADA has encountered resistance at the 20-day and 50-day moving averages, which are currently around 26-27 cents. It is possible that a potential breakthrough above these levels could signal a shift towards an uptrend.
From a broader perspective and examining the weekly chart, it appears that Cardano is currently testing the 20-week moving average. cryptocurrency In the world of energy, exceeding this moving average is a notable milestone. Additionally, it often marks the transition from a bear market to a bull market.
During bear markets, altcoins like ADA often underperform. However, the key takeaway is that ADA remains in line with the previous market cycle. Although the ultimate goal is to break through the 20-week moving average, this may take some time to achieve.
Recent data from DeFiLlama revealed that the total ADA held in smart contracts dropped from over 770 million on September 2 to approximately 730 million on September 11. This means that approximately 40 million ADAs have withdrawn from these contracts. It is possible that such a significant ADA influx into the market, especially during periods when trading activity is low, will create downward pressure on the price.
ADA has encountered some glitches in its smart contract functionality, affecting both its growth and token value. However, the project is actively working to address these issues. It offered Hydra as a solution to enable more transactions. Additionally, they have facilitated the process of creating smart contracts for ordinary individuals.