Cardano price has crashed by over 67% from its highest point in 2024 and is at risk of further downside as weak technicals coincide with its relatively weak fundamentals.
Summary
- Cardano price has crashed by over 67% from its November high.
- Nansen CEO believes that the ADA will drop from the top 20.
- Technical analysis points to more downside in the near term.
Cardano (ADA), one of the biggest players in the crypto industry, was trading at $0.40 on Saturday as it continued its recent sell-off.
The decline was mostly because of the ongoing crypto market crash and its weak fundamentals. In a notable statement, Alex Svanevik, the founder and CEO of Nansen, warned that the coin would plunge and move from the top 20 of the biggest coins.
Svanevik pointed to the fact that Cardano is a ghost chain that no one uses. Indeed, third-party data shows that Cardano’s 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 passed it. Its total value locked is ~$230 million, a tiny 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 stands at just $35 million. It has no share in the Real-World Asset tokenization and the non-fungible token industry.
These events likely explains why Cardano has not had any institutional embrace. For example, only Grayscale has applied for an ADA ETF. In contrast, other popular coins like Solana and XRP have attracted substantial applications.
Cardano is betting on three major upgrades. It is working on Hydra, a layer-2 scaling solution that will enable zero-fee transactions. Cardano is also working on Leios that redesigns the consensus protocol, and Midnight, its zero-knowledge sidechain.
Cardano price technicals points to more downside
The three-day chart shows that the ADA price has been in a strong downward trend in the past few months. It has plunged 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 at $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 each other.
The Average Directional Index has jumped to 36, a sign that the downtrend is accelerating. Also, the Relative Strength Index has moved to the oversold level.
Therefore, the most likely Cardano price prediction is bearish, with the next key target being at $0.2760, its lowest level in August last year. This target is about 30% below the current level.
