ADA price action indecisive while the number of Cardano users grows

Key Takeaways:

• Smart contract platform Cardano’s native token ADA enters a period of bias conflict.
• That is despite its growth as a decentralized blockchain platform, whose total users recently crossed the 3-million-mark.

YEREVAN (CoinChapter.com) – Cardano (ADA), one of the so-called “Ethereum killers,” has logged one of its worst monthly performances to date in Jan. 2022, falling by over 38%. Nonetheless, the ADA price recovered some of its losses entering February and was trading at $1.05 this Tuesday.

Cardano (ADA) daily chart

ADA has been trending lower inside a pattern called the “descending channel,” which entails two downward sloping parallel trendlines. They also feature a powerful mid-range, which encloses the price action and drives it down as the channel progresses.

The formation does not predict a bias after the token leaves the channel. However, while it holds, the pattern could be instrumental in determining short-term bias.

Last week, ADA consolidated sideways near significant horizontal support around $1. However, the Cardano token may rebound from the said price floor to increase by 35% and test the ascending channel’s resistance trendline.

Also read: Cardano's benchmark decentralized exchange, SundaeSwap, runs into issues right after launch. 

If ADA fails to hold the support, it could slide back to the channel’s lower edge. In detail, that would mean a 35% drop to $0.60. However, ADA’s price action doesn’t depend on technical indicators only; the overall climate on the market and on-chain fundamental developments play a vital role in the prediction.

What’s new with Cardano?

Cardano’s weekly performance didn’t fare well against other Ethereum competitors. For example, Solana (SOL), Avalanche (AVAX), and Terra (LUNA) gained over 19% each, while Cardano’s uptrend barely touched 1%.

However, Cardano chief executive Charles Hoskinson tweeted that the network was “moving the chains.” In detail, the platform hit 3 million wallets.

However, the first decentralized exchange SundaeSwap’s performance left much to be desired. Therefore, Cardano’s TVL stalled at around $74 million.

Also read: Cardano debuts in metaverse with Pavia, land price skyrockets. 

Additionally, IOHK (Input Output Hong Kong), the developing company behind Cardano, announced the launch of several new products on the blockchain to facilitate developers’ participation: the Typhon Wallet and the EkoFolio.

The former “aims to provide users with all the features they need to navigate the Cardano blockchain.” IOHK also added that the EkoFolio project was created for clients to “make money while fighting climate change.”