Cardano (ADA) remains within this week’s $0.38-$0.40ish range, surprising given the volatility seen in crypto and broader financial markets following Wednesday’s Fed meeting and Friday’s US jobs report. ADA bulls, however, will be encouraged by the fact that the $0.38 support level has held, and the token has not fallen below its 50 or 100-Day Moving Averages. Cardano has formed a descending triangle in recent weeks, which often precedes bearish breakouts. A break below the key near-term $0.38 support could lead to a dip back to the low-$0.30s. On the other hand, ADA might break to the north of its recent downtrend, potentially opening the path to late April highs in the $0.42 area.
Some on-chain metrics show strength in the Cardano network, including rising on-chain ADA trading volumes in recent weeks and a 33% increase in on-chain transactions of at least $100,000 between April 28th and May 3rd, suggesting that Cardano whales are driving a strengthening of on-chain activity.
It’s challenging to ascertain why whales might be transacting in larger sums, but with Cardano still down around 87% from its 2021 peaks, it could be that smart money is moving to buy the dip. Additionally, Cardano’s ecosystem boasts a high level of development, and new Decentralized Finance (DeFi) projects, such as the DJED stablecoin project, might be contributing to the growing trade value locked in smart contracts.
While Cardano has the potential to perform well in the coming years, investors should always seek to diversify their crypto portfolios. One high-risk, high-reward investment strategy to consider is participating in crypto presales. The presale of tokens from emerging crypto projects can help fund their development and offer huge exponential gains to early investors. Many of these projects have solid teams backing them and a vision to deliver a revolutionary crypto application or platform.
One such project is Ecoterra, which aims to create an all-in-one application that rewards users with the ECOTERRA token for recycling, provides a carbon offset marketplace, and facilitates a recycled materials marketplace using ECOTERRA or other cryptocurrencies. Ecoterra is currently conducting a presale for its ECOTERRA token, which will power its application.
By diversifying their investments, crypto enthusiasts can have exposure to various innovative projects while managing the unique risks associated with each. This approach helps strike a balance between potential gains and maintaining a healthy portfolio.
Source: Cryptonews
