Bloody Monday: Cardano ADA was not spared from the bloodbath, losing 30%.
Cardano is one of the major currencies that has been hit hard in today's turbulent cryptocurrency market: the token depreciated by 30% last week. The downturn and crash of the overall market are the reasons for the poor performance of the token. The past 24 hours have continued to be bloody, with a total Market Cap facing a decline of over 13%. The prices of the two major cryptocurrencies, Bitcoin and Ethereum, have fallen by 24% and 31% respectively since last week, demonstrating the vulnerability of the market to macroeconomic panic and the spread of private sale equity.
On the chain, Cardano has consolidated its position as a major participant in the encryption currency field. In a recent X post, the platform revealed that several indicators have grown in July.
From the indicators, the platform remains robust with growth in all aspects. This should translate into greater profits or bullish behavior towards ADA by investors. However, the current environment has shaken the possibility of maintaining high investor confidence.
Cryptocurrency analyst Benjamin Cowen has published an article detailing the worst case for the token. However, online analysts have different views on ADA. Despite the fact that ADA has hardly changed since its peak in May, analysts like Ellert believe that the token could skyrocket again as it has in the past.
Whether bullish or bearish, Cardano is a tested system that shows market downturns will not stop its operation. With the arrival of August, the platform enters the 501st epoch, which means Cardano has been running continuously for over 2,505 days. This remains the platform's most notable achievement as downtime is the bane of any blockchain network.
However, investors still agree with some analysts' bullish views. As the market turned from bullish to bearish, the price of pledged ADA fell, causing the total value locked on Cardano-related chains to drop by 15-30%. As the market continues to be bearish, selling pressure remains high.
If the market continues to fall, there is no reason for the bears to stop their dominant position in the market. The position of the token is unsustainable. As of the time of writing, the bears are currently trying to break through the price level of $0.302 in October 2023. If the bears successfully take down this level, the token will further decline, possibly returning to the price level before 2024.
This unprecedented oversold market may also be an opportunity for bulls. After the bearish breakthrough this week, ADA has been significantly discounted, and bulls can accumulate ADA at a lower price, thereby relieving pressure in the short term and having enough time to stabilize the price.
If this happens, $0.302 will become a strong support level for the upward trend, regaining the price range of $0.407 to $0.342 from June to July.
(Data Source: Christian Encila)
