Cardano (ADA), the Ethereum co-founder’s fetish crypto is in bad shape. The latter was born out of a disagreement between the two protagonists who did not see the usefulness of the blockchain in the same way. If Cardano is now recognized for its PoS technology, the data on its future price is very bad.
ADA had however broken all records during the 2021 bull market. The reasons for the fall of the flagship crypto are arguably multifactorial. Whether it is a simple correction, a lack of performance, or an unfavorable economic situation, opinions are going well. Looking at the numbers, nothing seems to be able to inspire hope. We are looking into this subject in our article of the day!
Have the bears won the battle on Cardano?
Over the past few days, the ADA token has suffered a phenomenal drop in value after passing the $0.5000 mark. Most worryingly, resistance levels had been placed at the values of $0.450 and $0.420. These resistance levels designate massive purchase orders from investors who can thus prevent the descent of an asset on the market if they are higher than the sale orders. Unfortunately, this was not enough to prevent Cardano’s descent into hell.
Is there hope for Cardano?
The floor price of the token over the last 7 days was reached on October 13, 2022 with a value around $0.3500. Since then, ADA has recovered a little from the bull’s eye reaching a price of $0.3979 before falling back into a range that hovers around $0.3700. If the crypto seems to have stabilized, there is little hope of seeing it lift off above $0.3880 again. The bears, that is to say investors wishing to see the value of ADA fall, have placed sell orders en masse at $0.3880. It will then take a lot of buying volume to hope to break the resistance of the bears.
But the $0.3880 threshold is not the only obstacle. To hope for a real recovery, it will also be necessary to face the resistances located at the prices of $0.408 and $0.420. If they are crossed, we could then reasonably hope for a return around the initial $0.5, but this scenario remains very hypothetical. This sudden fall, however, occurs in a favorable context for the crypto market. Bitcoin has just gained more than 2% in value over the past 24 hours and Ethereum, 3.42%! If you want to take advantage of this rise and invest in cryptos, register on a recognized exchange platform like eToro.
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ADA is moving towards a disaster scenario
If the token has stabilized for now, the risk is there. A new break in the price of the token could well take it to the abyss. Even if resistances are present at lower prices like at $0.350, it is still far too risky. Once this bar is crossed, one can easily imagine a fall to a value of $0.300 or even below. In short, the signals we have in our possession indicate bad news for the Cardano crypto. To help you visualize these resistances, here is a graph of TradingView which shows this phenomenon in detail.
Is it time to take advantage of Cardano’s fall and invest?
In other circumstances, this bear run could have been seen as a golden opportunity. However, the recent rally in the crypto market is not enough to restore the image of ADA, or at least not for now. The worst phase of the crypto market is expected between now and December 2022, so nothing is set yet. Cardano is very likely to continue its fall a little more over the next few days. If the market turns out to have bottomed now, that will be good news for ADA. But it’s still too early to tell, and for now, ADA is set to fall even further.
However, the “Sentiment” around the crypto is very positive. According to the “price estimation” section on CoinMarketCap about Cardano, investors are hoping for a price rally by the end of the month. The average price estimate of 11,000 people showed that they see the crypto 45% more expensive than it is now. This represents a token at nearly $0.5750. This is relatively encouraging news for Charles Hoskinson’s beloved token. In the meantime, you can learn more about Cardano’s value development by heading to our real-time course page.