Cardano (ADA) is recording extended sell-offs, with bears appearing to take control of the asset after failing clear key resistance levels. The decentralized finance (DeFi) asset has lost momentum in line with the overall crypto market cooldown.
Despite ADA’s bearish sentiment, a cryptocurrency community is projecting a positive outcome for the asset in the coming days. In particular, the CoinMarketCap community leveraging the price estimate feature forecasts that ADA will trade at an average price of $0.43 on February 28, 2023.
If the prediction is attained, it means ADA would trade at 20% higher than the token’s price at the time of publishing. The price estimate is based on votes by 1,991 community members.
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In the meantime, a machine learning algorithm is also projecting that ADA will likely trade in the green zone over the coming days. In particular, the PricePredictions tool suggests that ADA will likely be valued at $0.391 on February 14, 2023.
Cardano’s bullish drivers
The community’s bullish stand on Cardano can be attributed to factors such as the increased network development. In this line, the network has recently attained several milestones under its key metrics. For instance, the network hit 5,000 smart contracts as of February 2 since incorporating the functionality in September 2021.
Elsewhere, the blockchain has emerged in second place among leading smart contract crypto projects by staking market capitalization with a valuation of $10.4 billion. The network also ranks high in GitHub development activity, with 701 events.
Furthermore, as the ADA price moves to target the $0.5 level, the network is also witnessing increased whale activity, a factor that could signal what to expect for ADA. As reported by Finbold, since the start of 2023, ADA addresses holding between 1 million and 100 million grew by 36.
Cardano price analysis
By press time, ADA was trading at $0.36, having plunged by over 6% in the last 24 hours. On the weekly chart, ADA is down almost 10%.
Elsewhere, Cardano sentiment on TradingView’s technical analysis indicators on 1-day gauges is mainly bearish, with the summary going for ‘sell’ at 10. The same score is also recorded for moving averages while oscillators are in the ‘neutral’ zone at 7.
As things stand, ADA is still facing resistance at $0.40, while $0.35 remains the support zone. At the moment, to embark on any significant rally, ADA will mostly depend on the impact of buyers.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
