- Cardano price continued its bearish trend on Wednesday.
- The crypto fear and greed index plunged to the extreme fear level.
Cardano price continued its bearish retreating as investors remained fearful about the market. ADA pulled back to $0.3245, which was about 25% below the highest level this month. It has fallen by over 70% this year, making it one of the worst-performing big-cap coins in the world.
Crypto fear and greed index slips
Cardano price has been in a strong bearish trend since 2021 when it peaked at $3. At the time, ADA had a total market cap of over $90 billion. Today, this market value has plunged to about $11 billion, meaning that investors have lost over $79 billion.
Cardano has faced significant issues in the past few months. For one, its ecosystem, especially in decentralized finance, has struggled to gain market share. According to DeFi Llama, it has a total value locked (TVL) of $70 million. As a result, it has been beaten by many little-known platforms like Celo, Hedera, Canto, and Velas.
A closer look at its DeFi ecosystem shows that its platform have no major market share in the industry. For example, top platforms like Minswap, WingRiders, SundaeSwap, and MuesliSwap have a significantly small market share compared to the likes of Uniswap and dYdX.
Find out how to buy Uniswap.
A key growth engine for Cardano is NFTs. Data compiled by CryptoSlam shows that the total NFT sales in Cardano rose by 1.69% to $231k in the past 24 hours. This made it the fourth biggest platform after Ethereum, Solana, and Polygon.
Cardano price continued falling as the crypto fear and greed index declined to the extreme fear level of 23. Historically, cryptocurrencies tend to underperform when users are extremely fearful about the market.
The main reason for this fear is contagion in the crypto industry after the collapse of FTX. On a positive side, this collapse could lead to more regulations in the industry. A likely model is the Dodd-Frank act, which was created after the collapse of Lehman Brothers.
Cardano price prediction
The four-hour chart shows that ADA price has been in a strong bearish trend in the past few weeks. On Wednesday, it managed to move below the important support level at $0.3300, the lowest level on October 21st.
The stock moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below 50. Therefore, the coin will likely continue falling as sellers target the next key support level at $0.300, the lowest level last week.
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