Cardano’s (ADA) price confirmed a downward trend on August 15, as it broke a pivotal support level. This decline occurred shortly after the Cardano community rallied to promote their unofficial on-chain memecoin, SNEK. Despite the significance of memecoins in boosting the main network coins of platforms like Ethereum and Solana, ADA faces bearish pressure that has led to the loss of a crucial support level, raising concerns about further price declines.
Community Efforts and Positive Developments
The Cardano community has shown substantial support for the SNEK memecoin, quickly raising 2 million ADA (approximately $645,026) to promote SNEK at the Las Vegas Sphere for a week. This initiative has fueled hopes that SNEK’s success could help ADA prices recover to former highs.
Additionally, Europe’s real asset tokenization platform, Finest, has chosen the Cardano mainnet to launch its operations. By tokenizing assets such as commodities, stocks, and bonds, this move could attract new investors to ADA, potentially benefiting its long-term price trajectory.
Ongoing Downtrend for ADA
Despite these positive initiatives, ADA remains in a long-term downtrend, trading below the 21, 50, and 200-day Exponential Moving Averages (EMAs). The price recently fell below an initial support level at $0.3275 and may decline further to the next major support around $0.2800.
However, large investors, known as whales, are placing significant buy orders at these lower price levels, indicating potential signs of a reversal. An analysis of the liquidity order book reveals that whales have placed $1.77 million worth of buy orders between the $0.27 and $0.28 price levels, suggesting a possible recovery for ADA in this range.
Key Takeaways
– The Cardano community raised significant funds to promote SNEK, which could influence ADA’s price positively.
– Europe’s real asset tokenization platform, Finest, has chosen Cardano’s mainnet, potentially attracting new investors.
– ADA’s price is trading below key EMAs, indicating a continued downtrend.
– Significant buy orders from large investors at lower price levels suggest potential for a price rebound.
In conclusion, while Cardano’s ADA faces bearish pressures and a confirmed downtrend, community efforts and strategic initiatives like those of Finest offer a glimmer of hope. The activity of large investors at lower price levels could also indicate the potential for a price recovery. However, the market remains cautious and watchful for further developments.