Cardano is a blockchain platform that allows individuals and businesses to securely and efficiently conduct transactions and operations. The platform uses a Proof-of-Stake consensus algorithm called Ouroboros. Cardano provides the opportunity to participate in the platform by holding and using ADA. A key benefit of Cardano is its focus on security and sustainability.
The platform utilizes a multi-layer architecture and formal verification method for smart contracts to help prevent errors and fraud. It also strongly focuses on community participation, with the governance of the network being conducted through a democratic voting system. Cardano has secured its position amongst the $10.86 billion, but as it reached near the 100 EMA, a profit booking momentum was triggered. This sell-off resulted in a decline in ADA’s value.
ADA price action moved with a positive element of surprise but having reached an overbought zone triggered a profit booking stance. Further, a similar resistance, seen at $0.298, would also be triggered at $0.440. Will ADA overcome the upcoming resistance? Read ADA price prediction to know!
There could be various factors that are contributing to the resistance near the 100 EMA. At the same time, facing difficulty in trading above the 100 EMA may act as a barrier for ADA to reach higher price levels.
The lack of buying pressure is causing the price of ADA to stall. The sell-off might have been triggered by the overbought RSI levels and a high bullish outlook showcased by the MACD indicator.
Creating the first negative candle on the ADA price action has triggered massive fear amongst buyers as transactional volumes have reached significantly low. A resistance level at $0.440 is active above the current price of $0.315 with a decent difference between the two levels.
