June 12, 2024

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Cardano Drops To Its Lowest In Last 7 Days – More Slide For ADA?

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Cardano Drops To Its Lowest In Last 7 Days - More Slide For ADA?

Cardano, the 8th largest cryptocurrency in terms of market capitalization, traded for $0.38 at one point today to drop to the lowest it’s been for the past 21 months.

  • ADA just recorded its 2022 all-time low of $0.36
  • Cardano may be on another bearish run all the way to the forecasted $0.25 mark
  • IOG leans on strong fundamentals to have a bullish rally.

The downward slide continues for ADA, as its price declined further. As of this writing, data from Coingecko shows the asset is trading at $0.36.

It is now down by 6.9% for the past 24 hours and has lost 14.8% of its value for the last week. This development, however, is no longer news.

Veteran market analyst Peter Brandt tweeted last week that ADA, following sell off since the completion of the Vasil hardfork on the Cardano blockchain in September, will be on a decline all the way to $0.25.

Cardano Hits A 2022 All-Time Low

The situation was already bleak for Cardano when it plunged all the way to $0.38 earlier today. But that was shattered when ADA fell to its new 2022 all-time low of $0.36.

It was unfortunate that the altcoin fell below its short-term wedge pattern, pushing itself to a bearish run. Had it moved up in its pattern, the digital asset might have made a recovery from the slaughter of the crypto winter.

Cardano was able to move below its Relative Strength Index (RSI) oversold zone but that action was only brief and bears encountered resistance as traders appeared to have bought the dip.

There’s more bad news for ADA, as demand is not yet back to a sustainable level, primarily because there are expectations of more downward movement due to the current harsh market conditions.

How Bumpy Will The Road Get For ADA?

The cryptocurrency might be down right now and is among the few ones who have managed to attain a record 2022 all-time low, but that doesn’t mean the end for the ADA.

Cardano is leaning on its strong fundamentals to mount a comeback and be on the running for a bullish trading momentum.

According to the weekly development report released by Input Output Global (IOG), 1,117 projects are currently building on the Cardano Blockchain.

Moreover, there is an observed remarkable increase in new users of decentralized apps (dApps) that are built on the network of the “Ethereum killer.”

In terms of users and value, IOG said the non-fungible token of Cardano is also gaining more traction. In April this year, the network’s NFT trading volume was around $27 million.

During a July interview, Input Output Global CEO Charles Hoskinson said:

One surprising area of growth on Cardano is in the NFT space. About 40% of all the applications that are being deployed are NFT-related… About $270 million a month in NFT volume. So, $3 billion a year.” 

Crypto total market cap at $852 billion on the daily chart | Featured image from Latest Finance News, 
Source: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.