Cardano Price Prediction: The Rise and Fall of ADA. What Next?
The Cardano price has collapsed. ADA is trading at $1.2675, which is about 60% below the highest level this year. The current price is the lowest it has been since August while its total market capitalization has dropped to...
The Cardano price has collapsed. ADA is trading at $1.2675, which is about 60% below the highest level this year. The current price is the lowest it has been since August while its total market capitalization has dropped to $39 billion. At its peak, Cardano had a total market cap of more than $90 billion.
Cardano has had a relatively mixed year. Between January and September, the coin was up by more than 2,500%. This performance helped to propel it to become one of the top-ten biggest cryptocurrencies in the world.
There were three main reasons why the Cardano price surged. First, many investors bought it because of its founder. Charles Hoskinson, the founder of the network, was also among the founding team of Ethereum. As such, many investors believed that the platform would replicate what Ethereum had done. This also explains why Polkadot has done well.
Second, the positive media reports helped to push its price higher. Most analysts believed that its proof-of-stake consensus would help bring more traders to the network. That’s because many woke investors shunned coins using a proof-of-work method.
Third, the ADA price also jumped because of the launch of the Alonzo hard fork. This fork introduced smart contracts to the network. As such, many investors bought Cardano hoping that it would become a key alternative to Ethereum.
Therefore, the collapse of Cardano is mostly because of the underwhelming performance of the smart contracts network. It is hard to pinpoint the successful projects built on Cardano. Also, the industry has become very competitive with the likes of Avalanche and Solana taking the lead.
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Cardano price prediction
On the daily chart, we see that the ADA price has been in a spectacular decline in the past few months. Subsequently, the coin has formed a death cross, which happens when the 50-day and 200-day moving averages makes a crossover. The coin has also formed a bearish consolidation pattern and is approaching the key support at $1.0175.
Therefore, the path of the least resistance for Cardano at this point is to the downside. As such, there is a likelihood that it will crash to about $1.
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