Cardano is still consolidating from yesterday’s spill. the bad news is buyers have had ample opportunity to take control of this thing and they haven’t yet. But, its fairly reasonable given that resistance has played in off of that 2.45 level.
You can almost imagine the hodlers getting all scared after prices spilled back to $2, saying that they’ll sell out if only they get a chance with price coming back to 2.45 or more. So that explains resistance. Also of interest and helping with support around 2.3061 is a key Fibonacci retracement, the 38.2% marker of the July-September major move.
The crypto space continues to be in some form of flux after this week’s sell-off. Granted, there’s a number of fundamental headwinds and the big worry or risk is that the Fed might be going a little bit faster than what markets are wanting. Stocks appear less sensitive to FOMC actions, because after all, the wealth effect remains in full force and the Fed does not want to see stock prices fall. Crypto, however, is more of a thorn in their side and they’ll likely have even less consideration for crypto markets when considering a) taper and b) rate liftoff.
Cardan remains an attractive option even as crypto markets continue to pull back. Keep in mind the move that Solana made and that was largely on the basis of an NFT offering. The recent rally in Cardano is very much pushed by a similar motive, as Cardano creator, Charles Hoskinson made the announcement of the Alonzo hard fork last month, and this will enable the cryptocurrency of having smart contracts coded on the blockchain, which will enable NFTs. But perhaps more importantly, if we think about the types of folks that are using crypto or planning their businesses around it, green matters, and this is why Cardano continues to be a compelling option for both users and investors.
Coindesk currently has Cardano trading at 2.41.