- The Bears have taken control over Cardano, driving it below crucial support.
- Investors are growing concerned as Cardano struggles to reclaim $0.3.
- The following weeks are important for Cardano and could potentially shape ADA’s trajectory for the rest of the year.
Cardano Bulls and Bears have been embroiled in an intense tug-of-war over the $0.3 mark. However, with the crypto market’s tumultuous turn, ADA has stumbled into the Bears’ territory, leaving investors hoping for the Bulls’ rebuttal.
To provide insights into these developments, we present our Bi-Weekly DailyCoin Regular on Cardano from our expert, Insha Zia.
News and Events: Understanding Impacts
Cardano Bulls Struggle to Hold Support, ADA Stumbles into Bearish Territory
Cardano Bulls and Bears have been fiercely competing for dominance over ADA’s price action at the $0.3 mark. While the Bulls have valiantly defended this level, their tenacity wavered every time the broader crypto market showed weakness, ultimately leading to them relinquishing control to the Bears.
As Bitcoin struggled to hold $29,000, Cardano Bulls’ defense faltered, leading to ADA plunging 9% to the $0.29 level, firmly into the Bears’ territory. The decline triggered panic among investors, which allowed the Bears to grow more dominant. Investors are now closely monitoring Cardano’s next move as the Bears eye liquidity at $0.25.
Cardano Whales Wake Up From Deep Slumber
Since Cardano tumbled through support, Whales have significantly ramped up their trading activity to cushion ADA’s fall. Data aggregator Santiment revealed that Cardano whales holding over 1 million ADA, or $293,000, have continued accumulating despite the bearish sentiment. Notably, they’ve added over 150 million ADA, equivalent to $44 million, to their bags since July 25.
In contrast, retail investors have been tinged with panic, leading to a decline in network activity. Santiment reported a staggering 52% decline in Cardano Daily Active Addresses, bringing the total wallets on the network from 75,000 to 36,000 since Cardano went below $0.30, signaling dwindling demand and mounting sell pressure.
The broader crypto community recently accused Cardano of being a ‘ghostchain,’ stirring frustration and concern among ADA holders. However, the Cardano community, led by founder Charles Hoskinson, banded together to end the haunting speculations using statistics and facts.
TapTools and other prominent Cardano platforms underscored a series of impressive metrics that collectively paint Cardano’s robustness and strength in the crypto industry. Among these metrics, the Proof-of-Stake network has processed over 72 million transactions.
In addition, Cardano’s ecosystem has become home to over 8.6 million native assets and hosts over 4.2 million ADA wallets, with a staggering 22.6 billion ADA staked. The Cardano community also pointed out the remarkable growth of Cardano’s DeFi TVL, which has surged by over 300% this year to $190 million.
Groundbreaking US Crypto Bills Could Provide Clarity to Cardano
On July 26, most US lawmakers advanced a set of groundbreaking crypto bills that promise to provide much-needed clarity to Cardano and the crypto industry, alleviating their struggles and opening doors for its growth and adoption in the US.
The Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act would specifically deal with what blockchain-related entities qualified as money transmitters, solving major discrepancies in the state-by-state framework.
While still far from being signed into law, the bills are a giant leap forward and, if approved, could shake up the crypto landscape by laying the groundwork for regulatory certainty. Once the act is in effect, Cardano and other blockchain projects classified as securities by US regulators can navigate the compliance landscape more effectively and escape this classification.
Current Outlook
At the time of writing, ADA exchanged hands at $0.293, down 10% from two weeks ago. The recent downturn in the crypto market has heightened concerns among investors, leading to increased sell orders, which has allowed the Bears to grow more dominant.
With the Bears currently in control, ADA could move toward the next liquidity range at $0.25. However, should the Bulls regain control and push ADA beyond $0.3 before the end of Q3 2022, they could propel ADA’s price beyond $0.35. The following weeks will be pivotal for Cardano as the battle between the two camps unfolds.
Cardano’s recent struggles have brought the Bears out of their hibernation as they look to push ADA’s price further into the wilderness. According to CoinGlass data, since ADA fell below support at $0.30, traders lost over $1 million across long positions. This led to Cardano’s long-to-short ratio flipping from positive to negative since the last DailyCoin regular, signaling a considerable decline in investor demand.
It’s worth noting that the bearish sentiment was also evident across exchanges, chains, and derivatives, which remained primarily bearish, according to IntotheBlock data.
As the battle for dominance over ADA’s price action continues, the community is on the edge of its seats, eagerly awaiting the next candle.
What to Look Out For
The following weeks are crucial for ADA as it trades under $0.3. Currently, reclaiming this level is very important for the Bulls. If successful, ADA could journey beyond $0.4 as it did earlier this year. However, if the Bears’ resolve remained unshakeable, Cardano could consolidate below $0.3 for the rest of the year. At press time, Cardano stood at $0.293, boasting a trading volume of $254 million and a market cap of $10.3 billion.
Besides the price action, Cardano has a lot of updates in store for the upcoming weeks, including Project Catalyst’s testnet. The testnet expects to introduce numerous benefits to Project Catalyst, which could shake the POS chain’s landscape.
Some of these benefits include enabling community members to test new features and tools without disrupting the live funding rounds. Project Catalyst’s new testnet is set to increase development on Cardano and introduce battle-tested proposals and projects.
On the Flipside
- It’s worth noting that ADA is 90% down from its all-time high of $3.1 at press time.
- Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
- The recent crypto market downturn wiped out approximately $1.6 billion from crypto token market capitalization.
- The recent crypto market downturn helped Cardano reclaim its ranking from Dogecoin.
- As a result of Bitcoin plummeting, Crypto markets saw staggering liquidation of $108 million worth of crypto assets.
Why This Matters
Cardano has been trading under $1 since April 2022. Reclaiming the coveted $1 mark holds significant importance for ADA holders. In the following weeks, investor sentiment, price action, and ongoing developments will determine whether ADA can journey beyond $1.
Read the last DailyCoin Regular:
DailyCoin Regular: Bitcoin Price Updates, Breakdowns, and Projections
More on Cardano:
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