• Cardano price on pace to close with the largest down day since May 21.
  • ADA trading well below the 2018 high of $1.40 and may close at the lowest level since April 26.
  • IOG Director of Operations hints at a new government partnership in Africa relating to payments and open finance.

Cardano price had successfully held the 2018 high from May 24 until Saturday’s close below $1.40. Today’s weakness has confirmed the breakdown, and ADA may be beginning a larger decline that could involve a test of the psychologically important $1.00 or even a sweep of the May 19 low of $0.91.

Cardano continues to pursue African partnerships

At the end of April, Cardano developers Input-Output Global (IOG) announced important partnership agreements with the Ethiopian and Tanzanian governments. In the Tanzanian deal, the focus is to build scalable infrastructure together with World Mobile.  The objective is to provide mobile internet access to the nation while also offering digital identity to be the basis for economic development.

Earlier this month, John O’Conner, the Director of Operations, tweeted about bringing 1 million more users to the Cardano platform.

However, in an interview this weekend, he would not provide any details on the potential project, saying that it would not be productive for him to put more pressure on his shoulders by giving away details before signing the contracts.

O’Connor did state that the deal was in the early stages, with the functional part still in research. 

A lot of my deal flow is around trying to make sure we that we understand these setters and these industries by working with top-tier marque partners who we can do a pilot with, learn the ropes, learn what’s missing from the Cardano solution at the moment and bake it in.

O’Connor was light on details, but his confirmation of a new deal in the planning stage does capitalize on the early momentum of Cardano in building its blockchain footprint in Africa. For now, Cardano followers need to stay attuned to the news roll to get more insight into the project and which country it involves. 

Cardano price unable to silence the catastrophic voices in the crypto market

Cardano price is down approximately 26% from the initial test of the union of the anchored volume-weighted average price (anchored VWAP) and the 50-day simple moving average (SMA) on June 13. It was the first sign that price progress would be a challenge and that the underwhelming commitment, as demonstrated by the volume profile, would need to change.

With Cardano price now comfortably below the 2018 high of $1.40, market speculators need to entertain a deeper decline to the psychologically important $1.00 or a sweep of the May 19 low of $0.91, representing a 26% loss from the current price. To reach the May 19 low, ADA would need to bust the May 23 low at $1.04 and the 200-day SMA at $0.98.

If the Cardano price decline continues, it is anticipated that it will be quick, like on May 19 and to a lesser extent on May 23.

ADA/USD daily chart

ADA/USD daily chart

An event or news item directly related to ADA could arrest the decline. Potentially, more details about the Africa project mentioned above. Nonetheless, Cardano price would not be actionable until at least a daily close above $1.40. Take note of the failed breakout attempts at $1.40 in February, March and April. As shown regularly, support becomes resistance and heavy resistance if the support period was prolonged.

ADA investors should be monitoring for an oversold reading on the daily Relative Strength Index (RSI) on further Cardano price weakness. The last one was at the September 2020 low, the beginning of a 3,200% advance.

Cardano price sits in a vulnerable position with no overhead resistance to serve as a magnet or recognizable support level until $1.04. ADA market operators would be more successful in letting the digital asset prove itself by flushing down to the key supports or reclaiming $1.40 before engaging it from the long side.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cryptos enter buy zone

Bitcoin price has made a significant dip this week, dropping more than 11% and returning levels not trades since August 2021. Etheruem price hits new three-month lows, threatens a return to the $2,300 value area. XRP price looks determined to push lower to the $0.65 support zone before generating another bull run.

More Cryptocurrencies News

Loopring, NEAR and Harmony among the biggest losers as crypto bloodbath intensifies

Altcoins suffered double-digit losses in the recent crypto bloodbath. The recent spike in altcoin prices was followed by a correction for Loopring, Harmony and NEAR. The losses nursed by altcoins were accompanied by a wave of selling pressure across exchanges. 

More Cryptocurrencies News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist. 

More Shiba Inu News

Crypto.com Price Prediction: CRO ready to return to $0.25

Crypto.com Coin (CRO) is withstanding the current market headwind not that great. It has already lost over 50% of its value from the highs, and CRO could be set to lose another 30% as essential support is being breached.

More Crypto.com News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis