Cardano Struggles to Regain Bullish Traction Despite Breaking the 1 Million-Holder Milestone
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Cardano (ADA) slumped by over 32% between December 2 and December 4 amid the marketwide flash crash. That said, the sixth-largest cryptocurrency has rebounded from this drop but continues to battle bearish sentiment.
ADA resumed a bearish move on Wednesday as Bitcoin fell below $50K. As a result, Cardano’s market capitalization has shed over $3 billion in the last 24 hours amid persistent volatility.
Regardless, Cardano has recorded a significant milestone in the blockchain community as it hits the million-holder mark for the first time. This growth comes after the implementation of the Alonzo Mainnet upgrade. With Smart Contract capabilities, the network has recorded significant adoption by developers, many of whom have deployed dApps and other projects, on the blockchain.
Another reason for the surge in network activity is the introduction of the Cardano Decentralized Exchange on the blockchain. Many Ethereum users seeking better alternatives due to the high transaction costs on Ethereum have migrated to the Cardano network.
However, ADA is not the only “Ethereum killer” on the block, as Solana (SOL) has claimed a significant amount of the Smart Contract and DeFi space in recent times.
Nonetheless, many analysts in the crypto community predict that ADA could reach $2.400 by the end of December.
Key Cardano Levels to Watch — December 8
After rebounding to near the $1.500 critical level yesterday, ADA suffered a minor slip to the $1.350 support on Wednesday amid a marketwide pullback. Notwithstanding the broader market momentum, the sixth-largest cryptocurrency has battled to regain any meaningful bullish traction to no avail over the past few weeks.
That said, ADA needs to break above the mid-channel mark currently at $1.700 to flip the switch on bears. However, it remains unclear how ADA bulls could pull this off as we head closer to the end of the year when market momentum and volatility nearly grind to a halt.
Meanwhile, our resistance levels are $1.400, $1.450, and $1.500, and our support levels are $1.350, $1.300, and $1.250.
Total Market Capitalization: $2.35 trillion
Cardano Market Capitalization: $46.3 billion
Cardano Dominance: 1.97%
Market Rank: #6
