Cardano price has plunged more than 67% from its peak in 2024 and is at risk of further declines as weak technicals coincide with its relatively weak fundamentals.
Summary
- Cardano price has plunged more than 67% from its November high.
- Nansen’s CEO believes ADA will fall from the top 20.
- Technical analysis points to more downsides in the short term.
Cardano (ADA), one of the biggest players in the cryptocurrency industry, was trading at $0.40 on Saturday as its recent selloff continued.
The decrease was mainly due to the current crypto market crash and its weak foundations. In a notable statement, Alex Svanevik, founder and CEO of Nansen, warned that the coin would tank and fall out of the top 20 largest coins.
Svanevik pointed out the fact that Cardano is a ghost chain that no one uses. In fact, third-party data shows that the Cardano ecosystem is not growing despite Charles Hoskinson’s hype.
Cardano has a limited role in the decentralized finance industry, where popular chains like Ethereum, Solana, and BNB Smart Chain have overtaken it. Its total value locked is ~$230 million, a small amount for a crypto project with a market cap of over $10 billion.
Cardano has a limited market share in the stablecoin industry, where its supply amounts to just $35 million. It is not involved in the tokenization of real-world assets or the non-fungible token industry.
These events probably explain why Cardano has not had any institutional support. For example, only Grayscale has filed for an ADA ETF. In contrast, other popular coins such as Solana and XRP have attracted significant applications.
Cardano is betting on three important improvements. It is working on Hydra, a layer 2 scaling solution that will enable fee-free transactions. Cardano is also working on Leios which redesigns the consensus protocol, and Midnightyour zero-knowledge sidechain.
Cardano Price Technicals Point to More Downsides
The three-day chart shows that ADA price has been in a strong downward trend over the past few months. It has fallen from a high of $1.093 to the current $0.400, its lowest point since November last year.
It has moved below the important support of $0.5132, its lowest level in April and June this year. The coin has formed a mini death cross pattern as the 50-day and 100-day moving averages crossed.
The average directional index jumped to 36, a sign that the downtrend is accelerating. Furthermore, the relative strength index has moved to the oversold level.
Therefore, the most likely Cardano price prediction is bearish, with the next key target at $0.2760, its lowest level in August last year. This target is approximately 30% below the current level.
