Cardano price has pulled back sharply in the past four weeks as the recent momentum in the crypto industry continues. ADA was trading at $0.60 on Thursday morning, 27% below its highest point this year., meaning it is in a deep bear market.
Cardano’s growth stalls
Cardano, one of the best-known cryptocurrencies in the market, has been under pressure in the past few years. Recent data shows that the network is not growing and that it is being overtaken by other newer blockchains like Sui, Base, and Blast.
This performance is mostly evident in the Decentralized Finance (DeFi) industry, where the network os not seeing any meaningful development.
According to DeFi Llama, Cardano has a Total Value Locked (TVL) of below $600 million. That makes it the 18th-biggest blockchain in the world. It has been beaten by Blast, which has over $1.7 billion in assets.
It has also been passed by Base, which has over $1 billion in assets. Other newer blockchains that are doing better than Cardano are Arbitrum, Sui, and Aptos.
For example, FDUSD, the third-biggest stablecoin in the world, selected Sui as its next blockchain of choice.
Meanwhile, the biggest Cardano platforms are not seeing major activities. Minswap, the biggest DEX in Cardano handled just $3 million in the past 24 hours, making it the 91st biggest DEX in the industry.
MuesliSwap, which was once the biggest DEX in Cardano, handled just $3,660 in cryptocurrencies, making it extremely tiny.
Cardano has no market share in industries that dominate the blockchain industry. Its biggest lending protocol, Liquid, has a TVL of just $57 million. In contrast, platforms like AAVE and Compound have billions in assets.
Therefore, there is a lot of concern about Cardano’s valuation since it is a ghost coin. While most cryptocurrencies are overvalued. Cardano has a market cap of over $20 billion and has nothing material going on in its ecosystem, making it a zombie coin.
Cardano price forecast
ADA price peaked at $0.81 in March and has moved to a deep bear market since then. It has collapsed below the crucial support level at $0.677, its highest swing in December last year.
The coin has also crashed below the 50-day moving average, signalling that bears are in control. At the same time, the Relative Strength Index (RSI) has dropped below the neutral libe of 50.
Therefore, the outlook of the Cardano price is bearish, with the next point to watch being the psychological level of $0.50. The alternative scenario is where the coin bounces back and retests the resistance at $0.67.
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