Cardano price prediction after $ 51 billion collapse

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Cardano’s price hovers near its lowest level since July of this year as investors focus on the recent hawkish Federal Reserve move and the overall weakness of the cryptocurrency industry. ADA, the native token, is trading at $ 1.22, about 60% below this year’s high.

Its total market capitalization is over $ 39 billion. This means that investors have lost over $ 51 billion since its peak market cap was over $ 90 billion.

Why has the price of ADA crypto collapsed?

Cardano is a smart contract platform that prides itself on being the # 1 peer reviewed platform. The goal of the developers was to create a platform that solves some of the biggest challenges using blockchain. Some of the industries they were targeting were education, logistics, and manufacturing.

The biggest development in the Cardano network was the Alonzo hard fork. It was a development that brought smart contracts to the network. Smart contracts are the technologies that help developers create projects like decentralized finance (DeFi) and non-fungible tokens (NFT).

While this was a positive move, some critics were concerned about the network for three main reasons. First, there was concern that the developers had spent too much time building the functionality of the smart contract. Moreover, some young platforms like Avalanche and Terra have reached this scale in a short time.

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Second, there is concern about competition in the industry. Today there are many smart contract platforms that are working relatively well. Some of them are Avalanche, Binance Smart Chain (BSc), Polygon, and Algorand.

Third, the Cardano price has struggled because of Ethereum itself. Although Ethereum has its feeds, it seems the developers still believe in it. This explains why over 80% of developers still choose a relatively slow and expensive network.

Cardano Price Prediction

The daily chart shows that the price of ADA has followed a major downtrend in recent months. The coin’s selling accelerated when it fell below key support at $ 1.9090, which was the lowest level in September.

Cardano even formed a cross of death. It is a pattern that occurs when the 50-day and 200-day moving averages intersect.

At the same time, the relative strength index (RSI) of the coin has fallen. It also appears to have formed a bearish pennant pattern.

Therefore, while the price of Cardano will likely rebound, for now the coin will likely maintain a downtrend as the bears target the key support at $ 1.

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