Cardano price is up 3.5% during the Sunday market uptick to trade at $0.336 while boosting a market cap of $12.7 Billion. A tall green candle reflects renewed buying pressure for ADA holders, but the sustainability of Bitcoin’s price below $55000 could prolong the correction for the altcoin market. Can Cardano buyers invalidate this bearish thesis?
Will Cardano Price Hold $0.3 Support?
The Cardano price showcased a six-month correction from $0.81 to $0.334— a 58.7% decrease in the daily chart. As market sentiment hints at a prolonged downfall in September, the ADA price is poised to test $3 support. Here are three reasons why buyers may defend the aforementioned support.
Charles Hoskinson Opposes ADA Burn Proposal
Following the launch of the Chang hard fork, the Cardano community introduced a proposal to burn 1.5 billion ADA tokens, sparking a debate among its members. While some supported the idea, others believed it would be detrimental.
The Cardano CEO, Charles Hoskinso, seems to agree with the latter group as he strongly opposed recent calls to burn the network’s treasury funds. His recent tweet clarifies the matter: “treasury isn’t some pile of preprinted tokens that came from nowhere. It was aggregated from a tax on block production and transactions.”
This structure ensures that the funds represent the community effort while participating in the ecosystem. Hoskinson further emphasized.
The entire treasury comes from people building blocks and economic activity. You are effectively stealing from every SPO and ADA holder if you burn the treasury.
Hoskinso’s statement assures his commitment to maintaining a fair community interest and utilizing the treasury funds for further growth opportunities in Cardano.
Cardano Active Addresses Surge to Five-Month High
The Cardano price has been consolidating sideways since last week, wavering around the $0.32 level. Despite the boring price action, on-chain metrics point to an intriguing development. According to Santiment, the number of active addresses on the Cardano network surged to 54,780 on September 5th, marking the highest level in five months.
This spike in activity suggests growing network participation, a crucial factor that often drives demand pressure for ADA.
Cardano Price Set to Retest Multi-Month Support
The Cardano price chart shows two covering trendlines governing the market movement of ADA. The overhead trendline has restricted buyers’ movement since May 2024, while support has remained a crucial accumulation zone since June 2023.
If the bearish momentum persists, the ADA price may plunge 12% and hit the bottom support trendline at $0.3. The previous retest to the ascending trendline uplifted the Cardano by 238%, reaching a $0.81 high.
Thus, the Cardano price holds a higher possibility of rebounding from $0.3 support and chasing a potential target of $0.51.
Frequently Asked Questions (FAQs)
Cardano is expected to defend the $0.30 support due to strong on-chain growth, increased network activity, and the protocol’s focus on long-term development
Charles Hoskinson’s opposition to burning treasury funds ensures a fair distribution of resources for development, which helps sustain the network’s growth and stability, supporting Cardano’s price.
Cardano has seen a surge in active addresses, reaching its highest level in five months. This increased activity signals higher network engagement
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/reasons-why-cardano-price-defend-0-30/
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