- The Cardano price has been in a strong bearish trend in the past few days.
- ADA has fallen by over 37% from its highest level in January.
- What next after the SundaeSwap launch?
The Cardano price has been under pressure in the past few weeks even after some positive developments in the network. ADA is trading at $1.022, which is about 37% below the highest level this year. As a result, its total market has dropped to $32 billion, meaning its long-term shareholders have lost over $60 billion.
Cardano ecosystem growing
Cardano is a blockchain project that has been under pressure in the past few years. One of the biggest concerns among investors has been the lack of projects in the network after 6 years of launch.
Cardano launched its smart contracts features in the third quarter of 2021 during its Goguen era. The launch meant that developers could now be able to build decentralized applications (DAPPs).
In the past few months, we have seen several developers start building decentralized applications on its platform. The most recent one is SundaeSwap, which has become a sensation among Cardano fans,
SundaeSwap is a decentralized exchange (DEX) platform that allows people to swap tokens in the blockchain ecosystem. It aims to solve the challenge that exists in other DEXes, especially those in the Ethereum ecosystem. For example, its costs are significantly lower than those in other platforms like UniSwap, Curve Finance, and Balancer.
Shortly after launch, SundaeSwap saw significant demand as thousands of people joined the network. Indeed, the network became overloaded as demand jumped.
Still, Cardano has a long pathway to become a valid Ethereum competitor. For example, it only has a few apps in the network. Also, it has a total value locked (TVL) of just $80 million while Ethereum has a TVL of $120 billion. This trend could change in the coming weeks as it entered its Basho era.
Cardano price prediction
The four-hour chart shows that the ADA price has been under pressure in the past few months. The coin has fallen by 38% below the highest level in January. It has moved below the 50-day and 100-day moving averages. The two coins have formed a bearish crossover pattern.
A closer look shows that the Smart Money Index (SMI) has been in a bearish trend. It has even formed a bearish crossover.
Therefore, the Cardano price will likely keep falling as bears target the next key support at $0.92, which is about 10% below the current level.
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