Cardano analysis: red week, but...

Cardano's present

The most important news on this chain is theapproach to hard fork Plomin. On January 18, Input Output Global gave the go-ahead for the activation of Plomin on the core network. For those unfamiliar with it, the IOG is an entity that oversees the core tech development of blockchain; therefore, support for Plomin was critical in order to move forward in the right direction.

Plomin will make fully decentralized governance possible , truncating Cardano ‘s dependence on central authority.

The price of the native coin has reacted coldly, losing value in recent days. However, one must look at the big picture: nothing is changing at the fundamental level; on the contrary, the chain is trying to improve on the past.

Cardano ADA Technical Analysis

Information to know:

• Current value: about 99 cents (4 p.m., Jan. 22, 2025);
• ATH: > $3 (source Binance);
• Maximum supply: 45 billion;
• Circulating supply: 35.17 billion;
• Market cap: about $35 billion, ninth largest crypto ever.

Let’s help ourselves with the TradingView chart and see where we are.

The ADA coin has experienced a period of strong growth, going from a valuation of less than 35 cents to one near $1.2 per specimen. All in a matter of a handful of weeks. After that, the price began to return downward, but found some stability in the first decade of December. Since then we have been moving in a sideways channel between about 84 cents and $1.13.

At the time of writing we are practically in the middle of this channel, around 99 cents per specimen. Specifically, we are exactly on initial support, which is, however, very weak.

The current state suggests some contrast between supply and demand. To demonstrate this, significant is Monday’s candle, which shows that the gain has been almost totally reabsorbed by supply.

To rise, it would be important to maintain the psychological value of $1 and aim to position above $1.1 again. Even better would be to exceed 1.13, effectively breaking through the upper limit of the channel.

However, patience and caution are needed. There are indeed some non-positive candles, but taken alone they do not give any certainty and we must take into account the particular context we are experiencing, between memecoins gone crazy and Donald Trump just taking office.

In any case, ADA should defend the current level by its fingernails. Below it are several supports (95 and 90 cents), but if we go down we may have to turn our eyes to the 84-cent level, which is the lower limit of the channel.

Buy Cardano

Thelist of exchanges that offer the possibility of trading this coin is very long. Among the main ones, in addition to the already mentioned Binance, we name Coinbase, Bybit, Bitget and Kraken.

ADA is also available on the famous CeFi Nexo app , which allows people to put their cryptocurrencies to income in just a few clicks. Also available is the Nexo Card, a very attractive crypto-based payment card. Through it, you can make your purchases by taking a loan that has your coins as collateral; by doing so, no tax-relevant facts are generated and no tax is due (check if this statement is valid in your country).

For those who want to operate in a decentralized environment, ADA is on PancakeSwap and, of course, on Cardano Sundaeswap’s native DEX.