- Cardano’s Charles Hoskinson addressed the current market health amid growing uncertainty.
- ADA struggled to secure enough momentum despite retesting a critical support line.
A weaker investor sentiment has prevailed in the crypto market of late, leading to more liquidity outflows for most of the top projects. However, in a recent interview, Cardano’s [ADA] founder Charles Hoskinson weighed in on these conditions and provided his predictions for the future of crypto.
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Speaking during an interview, Hoskinson stated that the crypto market has been recovering from the bearish performance in 2022. This is despite the recent market slowdown. The founder believed that it was better to be in crypto right now than a banker, considering the ongoing banking contagion. His statement suggested that there was more loss of confidence in the banking sector at a time when crypto projects continue to build.
Cardano’s founder also gave his two cents on the state of crypto regulation. He acknowledged the convoluted state of crypto regulation in the U.S. as one of the key issues contributing to the current market uncertainty. Hoskinson mentioned that many crypto projects are shifting their focus abroad.
Cardano continues to focus on growth despite going through yet another wave of uncertainty. The network has maintained healthy development activity in the last four weeks. However, investor sentiment wavered during the same period.
Source: Santiment
Cardano’s weighted sentiment achieved a double bottom within the last two weeks, but could this be a precursor to a strong bounce back?
Can ADA bear the weight of the prevailing uncertainty?
ADA traded at $0.36 at press time, and this is a critical price zone. This is because the price was pushing below a critical ascending support line. The last time that a similar outcome occurred was on 10 March, after which ADA bounced and achieved another healthy bull run.
Source: TradingView
Key point to note about the press time support retest. The price had a higher relative strength compared to the previous two support retests. Its MFI indicated that there were significant inflows in the last few days despite more price downside, perhaps due to investors accumulating.
ADA’s supply distribution confirmed that whale activity was a mixed bag, but sell pressure from whales was slowing down. Addresses in the 10 million – 100 million were the biggest contributors to the downside in the last few days.
Source: Santiment
How much are 1,10,100 ADAs worth today?
ADA whales holding over 100 million have been accumulating since the start of May. However, their accumulation has so far not been strong enough to support a sizable bounce. Also, on-chain volumes remained low despite the support retest.
Source: Santiment
The lack of strong activity on the retail front suggested that investors were still uncertain about the possibility of a bounce back from support at press time.
