Cardano has found itself on rough terrain anew in the past few weeks, and barely able to hit its target, thus giving proponents and investors in the crypto some headaches.
As a result of recent profit taking by intermediate-term investors, its value has fallen by 22% in the past 21 days. As a result, it has been one of the market’s worst-performing assets. There has been an 12% drop in price over the past week, with current trading at $0.3075.
Will Cardano (ADA) Retreat Further?
Indications coming from the broader cryptoverse suggest that ADA price may retreat even farther in the near future. Bears have so far succeeded in using their long claws and dominate the market as of late, and a 7.5% decline can happen within the next two weeks.
ADA’s decline in price has resulted in a drop in its market valuation which, based on latest data by Coingecko, sits around $11.2 billion. In the monthly timeframe, ADA lost 23% of its value, which is nearly 4% more than its bi-weekly figure.
Cardano’s price drop can be linked to the ongoing selling pressure from the intermediate-term investors who have found it quite a challenge to bet into the asset’s recent upward motion. Profitability has dropped by about 10% as a result of the lack of speculative value.
Some experts are still very upbeat about Cardano’s prospects, despite its recent setbacks. Despite being out of step with current market trends, its fundamentals are solid.
ADA: See-Sawing Between Support & Resistance
Charles Hoskinson designed the native token for Cardano, and since August 2021, when it peaked at $3.160, it has been steadily declining in value. It hit a record low of $0.239 in December of 2022.
The price of Cardano has been see-sawing between support and resistance at $0.4005 since the start of the year. And, as it stands, the future price path for the crypto asset may all depend on whether ADA can really pull off a major rally or falter.
For its part, Bitcoin floundered near the $21,000 support zone. Bitcoin’s retest of this region of support should have elicited a more robust positive reaction than what was shown in the preceding hours.
This may be an early indication that a wave of selling could once again spread across the cryptocurrency market. Cardano, just like the rest of the major cryptos, has a strong correlation with the price movement of Bitcoin.
ADA currently has a market cap of $10.7 billion on the daily chart | Chart: TradingView.com
Strong Foundations Despite Challenges
As some market observers are pessimistic about Cardano’s future, it still has solid foundations. The future movement may be heavily influenced by whether or not it is able to retake the $0.400 long-term resistance area.
Meanwhile, a recent internet dispute that has erupted between Cardano developer Charles Hoskinson and a Reddit user with the handle Demesisx may have been one of the triggers for the collapse in price of ADA.
In an open letter, the Reddit user accused Hoskinson of having close ties to alt-right figures such as billionaire Elon Musk and Jordan Peterson.
Hoskinson pushed back, escalating the debate into a huge dispute that may negatively effect the token’s value.
-Featured image from God TV