www.banklesstimes.com
HomeNewsADA Crypto: Cardano Price Prediction After the $51 Billion Meltdown
ADA Crypto: Cardano Price Prediction After the $51 Billion Meltdown

ADA Crypto: Cardano Price Prediction After the $51 Billion Meltdown

Last updated 29th Jun 2022
Disclosure

The Cardano price is hovering near its lowest level since July this year as investors focus on the recent hawkish Federal Reserve decision and the overall weakness of the cryptocurrencies industry. ADA, the native token, is trading at $1.22, which is about 60% below the highest level this year.

Its total market capitalization to more than $39 billion. This means that investors have lost more than $51 billion since its peak market capitalization was more than $90 billion.

Why has ADA crypto price crashed?

Cardano is a smart contract platform that prides itself for being the first peer-reviewed platform. The developers’ goal was to create a platform that solves some of the biggest challenges using blockchain. Some of the industries they targeted were in education, logistics, and in manufacturing.

The biggest development in Cardano’s network was the Alonzo hard fork. This was a development that brought smart contracts to the network. Smart contracts are the technologies that help developers build projects like those in Decentralized Finance (DeFi) and non-fungible tokens (NFT).

While this was a positive move, some critics were concerned about the network for three main reasons. First, there was a concern that the developers had spent too much time building the smart contract features. Besides, some young platforms like Avalanche and Terra have achieved this scale within a short period.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Second, there are concerns about competition in the industry. Today, there are many smart contract platforms that are doing relatively well. Some of them are Avalanche, Binance Smart Chain (BSc), Polygon, and Algorand.

Third, the Cardano price has struggled because of Ethereum itself. While Ethereum has its flows, it seems like developers still believe in it. This explains why more than 80% of developers still choose a network that is relatively slow and expensive.

Cardano price prediction

Cardano price

The daily chart shows that the ADA price has been in a major bearish trend in the past few months. The coin’s sell-off accelerated when it moved below the key support at $1.9090, which was the lowest level in September.

Cardano has even formed a death cross. This is a pattern that happens when the 50-day and 200-day moving averages crossover.

At the same time, the coin’s Relative Strength Index (RSI) has declined. It also seems like it has formed a bearish pennant pattern.

Therefore, while the Cardano price will likely bounce back, for now, the coin will likely maintain a bearish trend as bears target the key support at $1.

If you want to trade cryptocurrencies, you might be interested in automated cryptocurrency trading robots such as Bitcoin Prime, Bitcoin Era and Bitcoin Code.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.