Cardano (ADA) is back on a bearish track after seeing some positive moves in the previous session, weighed down by the overall market sentiment despite optimistic news about rising adoption of its technology. At the time of writing, ADA/USD is trading at around $1.22.
Sitting at the seventh position in terms of market capitalization, Cardano has had a rough few weeks of trading although it did notch up some gains in December while the wider crypto sector remained under pressure. There was some excitement about dApps launching on the blockchain but it looks like the optimism was short-lived as bulls were unable to sustain the move upwards.
Meanwhile, there was some buying action on Wednesday following an announcement from tech leader Samsung partnering with a Cardano-based project, veritree, for an initiative to combat climate change. Samsung picked the climate solutions platform to leverage the power of blockchain technology to support its reforestation efforts.
According to Co-founder and CEO of veritree, Derrick Emsley, “By collaborating with veritree, eco-conscious brands like Samsung that aim to do good for our planet instead of just less harm can have accurate, ground-level data on their tree planting impact. Our mission is to make it simple to incorporate nature-based solutions into any business model and we’re excited by our strategic partnership with Samsung.”
Another exciting development to look forward to is Cardano’s partnership with Pezesha to build a P2P financial operating system in Africa. The move will take on the traditional microfinance sector which charges high interest rates and has a high default rate, and is sure to be a game-changer for the region, making funds more accessible and affordable to those in need.
ADA/USD Technical Analysis
On the 4-hour chart of ADA/USD, moving averages and the MACD are suggesting a strong bearish bias. Meanwhile, other leading technical indicators such as the momentum and Stochastic RSI are flashing buy as well.
Cardano’s price is well under the pivot point at $1.41 and has broken under the first support level at $1.24 earlier in the session too. We now need to pay close attention to the second support at $1.10 as a break under this can take ADA below the key $1 mark.