Cardano Inks a Major Deal in Brazil: But ADA Still Faces Breakdown Fears

The Cardano Foundation partnered with the Brazilian Olympic Committee to boost innovation in local sport with emerging technologies.

Despite the news, Cardano’s native token, ADA, remains deep in the red, mirroring the recent collapse of the broader cryptocurrency market.

The Collaboration’s Goal

The Brazilian Olympic Committee (COB) announced on its official website that the partnership will leverage Artificial Intelligence (AI), blockchain, and the Internet of Things (IoT) to modernize sports management, increase institutional transparency, and create more opportunities to interact with athletes, coaches, and fans. The entity’s Director General, Emanuel Rego, said the initiative marks a step towards the future of sports in the country.

The collaboration includes a three-year roadmap focused on four main action areas: identity and certification, fan engagement, equipment tracking, and governance and transparency. The first pilot projects are set to roll out in the coming months. Rafael Fraga (manager of the Cardano Foundation in Latin America) also touched upon the matter:

Cardano’s deal with the COB seems like a major milestone, given that Brazil is the most successful South American country at the Olympic Games. The nation is also among the global leaders in terms of crypto adoption.

ADA Price Outlook

The news has failed to trigger a price rebound for Cardano’s native cryptocurrency, which recently fell to roughly $0.20, or its lowest point since the beginning of 2021. It later slightly rebounded to the current $0.21, representing a 9% weekly decline.

Not long ago, the popular analyst Ali Martinez identified $0.247 as “major historical support,” arguing that a drop below that level (as it happened) could trigger a major crash to $0.113 and even $0.051.

Despite the concerning state of the crypto market and warnings from certain industry participants, ADA’s exchange netflow should be considered a bullish factor. Over the past weeks, investors have been consistently transferring holdings from centralized platforms toward self-custody methods, thus reducing immediate selling pressure.

ADA Exchange Netflow, Source: CoinGlass

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