As the crypto market experiences widespread declines, the Cardano price is starting the week off poorly. The biggest cryptocurrency, Bitcoin (BTC), is currently trading at $16,041, down 3.6% on the day, while Ethereum (ETH) is changing hands at $1,116.
Price recovery may be hampered in the medium term because the FTX fiasco is still causing turmoil in the market. Decentralized exchanges (DEXs) are becoming a more popular topic of discussion as investor confidence in centralized exchanges (CEXs) declines.
The failure of FTX, in the opinion of Raphael Haupt, founder and CEO of Toucan Protocol, demonstrates the underappreciation of the importance of decentralized crypto governance. Regulators cannot carry the entire burden, necessitating the incorporation of governance into the value chain via smart contracts.
In response to the FTX incident, Haupt stated that “using smart contracts and decentralizing protocol governance whenever possible construct safer and more transparent rails allowing the movement of every asset to be publicly verified at any moment.”
Today’s Cardano Price
Cardano Price Prediction
Cardano’s price continued to decline after it was unable to overcome resistance at $0.44. Although it was anticipated that the level around $0.32 would act as support, the price has already dropped to $0.30 in line with the other crypto markets.
Cardano’s price needs to remain stable at $0.30 in order to prevent falling toward $0.25. Bulls should exercise caution and keep in mind the Moving Average Convergence Divergence (MACD) sell signal, which is indicated by the red bars.
On the other hand, ADA might try again for $0.44 and higher in the upcoming weeks if it is able to consolidate above $0.30 for a few days. Of course, the cryptocurrency markets are not yet safe.
Over the past 24 hours, the trade volume has increased by 116% to reach more over $300 million, according to CoinMarketCap. Due to the FTX fiasco, investors are still on high alert, and some choose to convert their cryptocurrency holdings to stablecoins like USDT that are tethered to the dollar.
Last week, fresh records were broken for net outflows from exchanges, according to on-chain data made public by CryptoQuant. Around 81,712 BTC, or almost $1.3 billion, were taken out of Binance’s wallet. Changpeng Zhao (CZ), the CEO of Binance, stated a slight increase in withdrawals during market downturns is typical.
To avoid the risks connected with centralized exchanges, investors will probably keep embracing decentralized crypto storage solutions.
Despite the significant price decline, large volume holders are still showing interest in ADA. According to the graph below, holders are filling their bags with the cheaper ADA. Santiment said on November 20 that there are now 2,398 addresses having 1M to 10M tokens, up from 2,374.
Addresses with more than 10 million ADA, which currently stand at 477 from a 30-day low of 469, showed a similar increasing pattern. This pattern demonstrates that despite temporary price corrections, investors remain optimistic about the future of Cardano.
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