Cardano (ADA) has faced a significant price drop, falling over 51% from its peak in November last year. This article explores the reasons behind this trend and its potential consequences.
Current Situation of Cardano Price
Currently, the price of Cardano is $0.646, leading to a market capitalization of over $22.7 billion. This price drop aligns with the overall trend in the cryptocurrency market, where other tokens like Solana, Binance Coin, and Avalanche have also entered a bear market.
Technical Analysis and Upcoming Risks
Cardano may face further decline as it approaches the formation of a so-called "death cross." This event occurs when the 200-day and 50-day exponential moving averages cross each other while pointing downward. Currently, the 200-day moving average stands at $0.729, while the 50-day one is at $0.736. If this pattern fully forms, the coin might fall to the next potential target of $0.515, its lowest level since February this year.
Fundamental Challenges for Cardano
There are significant fundamental challenges affecting Cardano’s price as well. The total value locked in its ecosystem has dropped to $314 million. Conversely, newly launched blockchains like Berachain and Sui have significant assets in their DeFi networks, amounting to $2.97 billion and $1.2 billion, respectively. Additionally, Cardano is facing delays in its integration with BitcoinOS, and expected meetings with founder Charles Hoskinson have not yielded any official news.
The situation with Cardano illustrates not only the risks associated with technical analysis but also the challenges that need to be addressed to restore market position.
