Can Cardano Reverse to the Upside with the Shift in Market Sentiment?

The cryptocurrency markets have continued to consolidate, with the bulls trying to inch higher and higher. Although the lower timeframe looks like the market is in an uptrend, the picture on a relatively higher timeframe is being dominated by both buyers and sellers. As a result, the markets have barely made a significant move in the past couple of weeks.

On the correlation front, however, Bitcoin and altcoins are going out of sync. Bitcoin has been trading at the same highs for a few weeks now, whereas altcoins that were subdued in the earlier month are beginning to make a move to the north. That said, there are a few cryptos that are being dumped slightly, putting them in a downtrend on the smaller price scale. These are those crypto assets that made their all-time highs much before BTC in August 2021.

One of the best examples that fall in the category of the markets trending lower after outperforming initially is Cardano (ADA). The fourth-largest cryptocurrency in the world was the first crypto among the top 5 to make a new all-time break above the May highs. But the markets have taken a turn, with ADA crypto heading lower and the rest approaching their May highs.

Nonetheless, the fundamental side of the Cardano project does not seem to take the path of its price. In other words, the updates and developments among the community are thriving.

Cardano Hits 2M Wallets as a Result of Alonzo Upgrade

The Cardano Foundation announced on Monday that the number of Cardano wallets had topped 2 million. On May 22, 2021, the network achieved the prior milestone of 1 million ADA wallets.

The Cardano Foundation successfully implemented the Alonzo hard fork around that time, allowing smart contracts on its network. Meanwhile, Cardano’s founder, Charles Hoskinson, has moved his focus to expand blockchain technology acceptance in Africa. Hoskinson stated in a tweet last week that 5 million Ethiopian schoolchildren are on track to obtain an ID relying on the Cardano blockchain for monitoring academic success.

The Cardano network will be totally compatible with Ethereum’s smart contract platform once the Alonzo upgrade is fully deployed. As an outcome, the Cardano network expects to grow even more.

Cardano’s Project Catalyst Brings $4 Million Funding

To give a quick background, Project Catalyst was created a year ago with the goal of providing public support for Cardano-based initiatives. It’s the core of Cardano’s aim to build on-chain governance by utilizing treasury money to finance innovation. ADA token owners vote on the projects they wish to see funded after the earliest phases of conception, cooperation, and submission. Holders of the Ledger, Daedalus,  Trezor, Adalite or Yoroi wallets can vote yes or no on the ideas given.

Fund6, whose creators IOHK have dubbed the “largest and finest innovation fund ever,” is the topic of the latest round of voting. In this round of investment, a total of $4 million was available. This is about twice as much money as Fund5, which had $2.125 million available for financing.

The results of the Fund6 vote have been disclosed by Daniel Ribar, who works at Cardano Project Catalyst in the public and media department. He used the chance to say that Project Catalyst is a model of governance openness.

There were over 102 ideas filed, but only 20 of them satisfied all of the conditions, including financial limitations, to be considered for a share of the public funding. The top three initiatives with the most votes were an open-source SDK for smart contract developers, SaaS (software as a service), and a wallet avatar customization feature. 

Cardano Market Price Update

Cardano has been on an uptrend ever since it has gained mainstream acceptance. With the ecosystem growing at a rapid pace, the demand for ADA has never taken a hit, and the price action clearly shows. As mentioned earlier, Cardano was the first of the top five assets to breach its previous ATH.

With a current market cap of $68 billion, as reported by Coinmarketcap, the ADA crypto is only a couple of billion dollars to hit the $70 billion mark. However, relatively, it is quite far away from its peep, Binance Coin (BNB), which has surpassed the $90 billion in market value.

The strength of the buyers after transiting into an uptrend at $1 was strong. The momentum drove the prices to the highs at $2.4 and even broke through it successfully with no major hurdles. The new all-time high stands at $3. But the trend took a turn after finding resistance at the $3 mark. Not only did the market drop in the form of a retracement, but the sellers also had momentum backing their side.

Currently, ADA crypto trades at the support level at $8.3, where the buyers have shown their first presence with a wick on the bottom. This hence could turn to be the bottom of the market, as Cardano may digest the bullish sentiment in the entire crypto market and continue to trade higher.

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