Cardano Eyes Retest of Yearly Low Following US CPI Data Release

Cardano’s price is eyeing a retest of the yearly low at $0.39, with the release of US CPI data.
Despite a spike in Cardano’s development activity, the altcoin’s price failed to recover against competitors Bitcoin and Ethereum.
Cardano’s price remains at risk of plummeting to sub $0.20 levels in the ongoing downtrend.

Whales on the Cardano network holding between 10 million and 100 million ADA scooped up the tokens during the recent dip in the Ethereum-killer’s price. Cardano’s price chart reveals that the altcoin could suffer a decline and plummet to sub $0.20 levels, despite accumulation by whales.

In the past week, Input Output Global, the developers behind the Cardano network made 3028 Github commits. With a total of 13,003 Github changes made in June 2022, development activity on the Cardano network is higher than its competitors Solana, Avalanche, and Ethereum. Developers are working on the upcoming Vasil hard fork, therefore activity on Cardano repositories has increased. Despite the spike in activity on Github, Cardano’s price failed to recover.

The development activity on the Cardano network revealed that the altcoin has steadily advanced. The Vasil hard fork is part of the Basho phase and is projected to provide numerous enhancements to the Cardano blockchain.

Cardano’s price has posted nearly 5% losses overnight in response to US CPI inflation data, and Bitcoin’s price decline. Cardano’s price has posted over 11% losses over the past week. The altcoin’s price trend is currently bearish and Cardano could continue to decline, to test the $0.39 low.

If Cardano’s price trend fails to reverse, a drop to the $0.20 level is expected soon. The US CPI data triggered a meltdown in the crypto market and Fed’s monetary policy tightening increased selling pressure on Bitcoin, Ethereum, and Cardano.

A repeat of the events is likely and Cardano’s price could hit $0.39 and a break below this level could push ADA to sub-$0.20 level as no other notable areas of support are in sight.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.