For the cryptocurrency market, May continues to be a seller. After the declines in digital assets as of May 10, some altcoins are positively diverging. The inability to protect the $28,000 band in Bitcoin leads investors to alternative cryptocurrencies.
The upward trend gained in the cryptocurrency market since the beginning of the year has been deteriorated for a while. Altcoins, which have been positively differentiated from digital assets that have been longing for positive developments recently, make investors happy. While the effects of the BRC-20 frenzy and the interest in meme tokens are increasing, altcoins that stand out with their collaborations ensure that the market value remains strong. On our altcoin radar this week, we have Cardano, which gained momentum with its cooperation, and Litecoin, which will be halved.
Cardano Developments Attract Attention
Cardano was undoubtedly the most popular PoS-based smart contract platform before Ethereum Merge in 2022. The Cardano development department and team are constantly coming together with various projects. They especially focus on issues such as privacy and security that can be experienced on the Cardano network. This allows the Cardano network and ADA token to make progress. The 1500% increase in transactions on the Cardano network in recent days also indicates that whales are investing in this altcoin. On-chain data, the number of transactions and the increase in transaction volume show the savings of whales as well as active wallets. The 4.5% increase in the locked ADA tokens in the 24-hour period can be seen among the factors that will increase the price of ADA.
According to the latest announcements shared by the team, a new collaboration will be launched with Acredius, a fintech company. This Switzerland-based company will enable the use of ADA so that depositors can make direct investments. It will not only be limited to this, but will also provide facilities for individual and large investors to advance their activities. Aiming to strengthen the token with its strategic collaborations, the Cardano Foundation aims to diversify its plans in the long term and to grow in the DeFi field.
Cardano is thought to be an alternative, as Ethereum Developers are trying to fix the network congestion after the Shapella update. This is among the factors that will affect the price of the ADA token in the long run. Reinforcing its infrastructure with various updates, Cardano has been in a narrow band for a while. With a market cap of $12 billion currently, Cardano is stuck in the 0.37 region. It is below the 50-day moving average of Cardano, which describes itself as a competitor to Ethereum. It consolidates between 0.34 and 0.44 as we indicate in the chart below. Not far from its 50-day moving average, ADA is struggling to break through this resistance. On the upside, it can gain momentum to the 0.44 resistance with support from the $0.38 band. However, in the regression to the 0.35 band, which is a critical level, it may be possible to withdraw to 030 support. However, the majority of investors continue to keep ADA in their wallets with their expectations for the future of ADA. It is also worth noting that ADA, which has a strong correlation with Bitcoin and Ethereum, moves according to market sentiment.
