ADA Price Action says $1.00 Cardano Could be coming soon

The ADA price is on the verge of a monumental 50% collapse as Cardano loses ground against Solana and Avalanche.

Cardano (ADA) is weaker again on Tuesday at $1.69 (-3.20%) and on course for its fourth consecutive daily loss. Cardano’s fall from grace has wiped almost $43 billion from the ADA token’s market value in the last two months. In September, the price reached a record high of $3.16, sending Cardano’s market cap to almost $100b to become the 3rd-largest cryptocurrency behind Bitcoin and Ethereum. However, a lack of traction following the Alonzo upgrade has seen Cardano flipped by Binance Coin (BNB), Solana (SOL) and Tether (USDT) and now sitting just above Ripple(XRP) at 6th place.

The underperformance is undoubtedly due to the growing belief that Cardano is losing the race for Ethereum’s crown. Recently rival layer-1s like Solana and Avalanche (AVAX) have emerged as investor favourites, leaving the ADA price lacking a bullish catalyst. As a result, the technical outlook is rapidly deteriorating, which, unfortunately for holders, may be forecasting a violent extension lower.

Cardano Price Analysis

The daily chart shows the ADA price failed to recover the 200-Day Moving Average at $1.88 and is now testing trend support at $1.67. In my opinion, a daily close below the trend could be the catalyst for material long liquidation.

If my theory proves accurate, the July high around $1.50 is the first support level. However, an exaggerated sell-off targets the May flash-crash lows around $0.90.

The bearish argument carries significant weight, considering the broader market weakness and Cardano’s current standing. However, the pessimistic outlook relies on the ADA price remaining below the 200 DMA. On that basis, a close above $1.88 invalidates the thesis.