Concept of Cardano coin Levitating over world network, a Cryptocurrency blockchain platform , Digital money

ADA Price Staring at Further Slump as Cardano Losses Third Spot

BNB has surpassed Cardano to become the third-largest cryptocurrency. This fall comes as investors’ enthusiasm for smart contracts begins to wane. With that slump, ADA price could spiral down further.

Cardano had a great summer, and it had risen to become a prominent player in the ecosystem during that time. After a series of hard forks and updates, the network finally had smart contract capabilities, and the community was ecstatic. However, the hype seems to have cooled down, at least for now. 

Counting on partnerships

Cardano’s CEO, Charles Hoskinson is currently on an African tours, stretching from South Africa up to Egypt. He has once again reiterated his belief that Africa will play a significant part in the global future since will lead the world to begin utilizing and manufacturing blockchain-based items in the the continent’s economies, healthcare, education, insurance and other segments.

The outcome of the African tour could provide a new impetus to propel ADA prices higher in the near term or long term. We’ve seen before that Hoskinson’s trips to Africa often lead to multi-million dollar collaboration agreements being inked, like the one Ethiopia signed earlier this year.

Technical analysis for ADA price

ADA price is still trading on a range, which stretches back to 1st October.  The MACD indicator tells us that the token’s price is likely to remain within a tight range of between 2.07 and 2.25. The MACD line is slightly above the signal line and this is likely to sustain the range, considering that the two lines are technically at par and moving parallel to each other.

As a result, the ADA/USD pair is likely to rise marginally, with the first resistance being encountered at 2.19 and the second one at a 9–day high price of 2.25.  A break beyond that price could bring an end to the range trading. On the lower side, the pair is likely to establish the first support at 2.07. However if the momentum weakens further, the second support level could be at 1.97, which will be outside the range and below the psychological support at 2.00.

ADA/USD daily price chart