There is a likelihood that the coin’s price will continue falling as bears target the key support at $0.4340.
- Sell Cardano and set a take-profit at $0.40.
- Add a stop-loss at $0.6450.
- Timeline: 1-2 days.
- Set a buy-stop at $0.6065 and a take-profit at $0.7435.
- Add a stop-loss at $0.500.
Cardano price has been in a spectacular sell-off as concerns about the crypto industry continues. The ADA/USD pair has declined from an all-time high of over $3 to today’s $0.5600. As a result, the coin’s market cap has crashed by more than $91 billion to today’s $18 billion. This decline has been worse than other big cryptocurrencies like Bitcoin and Ethereum.
Cardano Sell-Off Accelerates
Cardano is a leading blockchain project that was established in 2015 by Charles Hoskinson, a co-founder of Ethereum. The network’s goal is to help developers build decentralized applications (dApps) such as those in the gaming, metaverse, and DeFi industry.
However, while Cardano is a highly popular blockchain network, it has several challenges beneath the surface. For one, it took more about 6 years for the project to introduce smart contract features. In this period, some projects like Cronos and Avalanche were launched and achieved success.
At the same time, Cardano’s ecosystem is relatively small. For example, while Cardano has a market cap of over $18 billion, its DeFi applications have a TVL of just $137 million. Therefore, there have been lingering questions about the network for a while.
Cardano price declined sharply last week as Terra Luna moved from one of the biggest coins in the world to the biggest bust. A coin that was once valued at over $65 billion is now valued at $1 billion. Its stablecoin has lost its peg and is now trading at cents. Therefore, some analysts believe that Cardano’s lack of ecosystem could push it sharply lower.
Like other coins, the ADA/USD pair has bounced back in the past few days. It has moved from last week’s low of $0.4086 to a high of $0.6056. However, there are signs that this bear market rally could be short-lived.
Cardano Price Prediction
The ADA price managed to move below the important support level at $0.7435, which was the lowest level on February 24th. While the coin has made some gains, it remains below the 25-day and 50-day moving averages while the money flow index (MFI) has moved to the oversold level. The coin formed an inverted cup and handle pattern.
Therefore, there is a likelihood that the coin’s price will continue falling as bears target the key support at $0.4340. On the flip side, a move above this week’s high of $0.6200 will invalidate the bearish view.