- Cardano has yet to close green after fumbling support at $0.3.
- Investor exodus, network activity decline, and diminishing trading volume, among other factors, have allowed the Bears to grow more dominant.
- Investors worry if Cardano will recover from the Bears’ claws.
Cardano Bulls have conceded ground to the Bears as they stumbled at the $0.3 support level, causing ADA to spiral into uncertain territory. As ADA struggles to find footing, its persistent downtrend fuels concerns, and frustrations among investors about their holdings.
To provide insights into these developments, we bring our Bi-Weekly DailyCoin Regular on Cardano from our expert, Insha Zia.
News and Events: Understanding Impacts
Cardano Bears Cruise Past Whales’ Demand Zone
Since fumbling support at $0.30, Cardano Bulls are nowhere to be found as ADA loses level after level to mark a staggering 13% decline over the past two weeks.
While previously, the Whales came to the rescue and gave the Bulls a solid push. This time, their influence proved fleeting as the Bears drove past their demand zone between $0.28 and $0.29, pushing ADA under $0.27.
Following ADA’s plunge, CoinGlass revealed that traders incurred losses exceeding $9 million across ADA long positions since the Bulls faltered at holding support. Making matters worse, ADA’s underperformance translated to an investor exodus, leading to Daily Active Addresses on the network slashing by more than 50% to 36,000 wallets.
ADA Crash Lands into Bearish Territory
The crypto industry recently experienced heavy blows that triggered substantial losses across several tokens. Bitcoin, Ethereum, Cardano, and other major tokens bore the brunt of this impact, being heavily jolted from their ranges to levels last seen in 2022.
Over the past two weeks, Cardano dipped by more than 18% from 0.29 to 0.23, wiping millions in open interest and resulting in traders incurring substantial losses. While significant, Cardano’s loss wasn’t as titanic as Ethereum’s $300 million and Bitcoin’s $500 million liquidations in the same period.
As per CoinGlass, the unexpected earthquake shook the market out of $1.2 billion in liquidations across crypto-tracked futures, reportedly ranking as one of the largest since the FTX fiasco.
Although the exact cause of the crash remains uncertain, community members have pointed toward the SEC’s decision to delay all Bitcoin Spot ETF applications. Some users speculate SpaceX’s alleged sale of $373 million worth of Bitcoin triggered the crash, while others attribute the market’s upheaval to Evergrande filing for bankruptcy in the US.
It’s worth noting that all of the news above is yet to be confirmed and holds weak arguments as the main cause of the crash. Investigations for the epicenter remain as investors find themselves dumbfounded by the sudden crash.
Charles Hoskinson Throws Jabs Left and Right
Since the last DailyCoin regular, Cardano Founder Charles Hoskinson has been active on social media, throwing jabs left and right. The rowdy pundit has taken up several fights within the crypto community, staunchly defending his beloved network.
Earlier this week, Cardano was scrutinized for being irrelevant, defunct, and dead as ADA’s price continued to underperform. In a fitting response to the barrage of insults, Charles Hoskinson and the Cardano community clapped back with compelling evidence, highlighting the network’s prowess, such as no reboots, slashing, downtime, hacks, forks, and bugs.
The founder’s arguments stood in stark contrast to its competitors, including Ethereum, Polygon, and Solana, which have grappled with various issues, such as network congestion, outages, and glitches, among other things.
Cardano Goes Cross-chain
Blockchain interoperability solutions provider Wanchain recently developed a mechanism allowing Cardano to connect with every major blockchain network in the world through decentralized, non-custodial, bi-directional cross-chain bridges.
With Wanchain, users can now:
- Move ADA from any EVM-compatible chains and back.
- Move Cardano native tokens to any EVM-compatible chain and back.
- Move any coin or ERC20 token from any EVM-compatible chain to Cardano and back.
The Wanchain team developed special Haskell smart contracts to support communication and transactions between Cardano and other networks. They also upgraded their node infrastructure to construct UTXO transactions to call smart contracts and have added support for Cardano’s signature scheme.
Wanchain’s bridges are expected to open numerous avenues for Cardano, allowing it to expand and interconnect with other ecosystems.
Cardano Inches Closes to Voltaire Era with SanchoNet
As Cardano rapidly moves towards realizing the Voltaire era and its decentralized governance model, it looks to set a precedent for what it could become once it’s truly decentralized. So, to provide a glimpse into the future of its governance, it has released SanchoNet.
SanchoNet is a playground for experimenting with features outlined in CIP-1694. It enables community members to gain firsthand experience of the network’s governance mechanisms, including submitting new constitution governance proposals, participating in Stake Pool Operator (SPO) votes, and more.
Members can now join and test out a set of governance actions, take on different roles within the network, and help the developers refine the respective mechanisms before they go live on the mainnet.
Current Outlook
At the time of writing, ADA exchanged hands at $0.258, down 11% from the last DailyCoin regular. The recent crash in the crypto market has wreaked havoc, triggering increased sell orders and notably bolstering the Bears’ dominance.
With the Bears currently in control, ADA sits firm in their territory. Over the following weeks, Cardano’s price could tap its yearly low at $0.21 and stabilize within the $0.26 range, much akin to the price action preceding the SEC’s crackdown.
Considering the prevailing macro conditions, the likelihood of Cardano reclaiming $0.3 remains low. For the Bulls to reclaim control, Bitcoin has to rally above $30,000 to effectively overturn the current bearish outlook and pave the way for altcoins to reclaim their lost valor.
Cardano’s recent hurdles have helped the Bears grow more dominant as they push ADA into the depths without friction from the Bulls or the Whales. After successfully claiming $0.25, their sights are set on the yearly low.
Given the Bears’ continued dominance over ADA, investors have largely shifted toward a bearish outlook for the foreseeable future. According to IntotheBlock, exchange, derivative, and on-chain markets remained bearish at press time. The notion was further reinforced by Cardano’s long-to-short ratio flipping from positive to negative.
What to Look Out For
The following weeks are very important for ADA to find ground. The Bulls must reclaim $0.29 before the end of the quarter, or ADA could range under $0.26 for the remainder of the year.
On the Flipside
- It’s worth noting that ADA is 92% 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 $116 billion from crypto total market capitalization.
- The recent crypto market crash led to a rise in the percentage of Cardano holders experiencing losses, reaching 89%.
Why This Matters
Cardano’s recent underperformance has brought its yearly growth to 5%. ADA’s struggles in showing strength when it matters the most have greatly hindered its plan to reclaim $1 and could trigger an exodus of investors and holders.
More on Cardano:
Cardano Continues to Tumble As ADA Falls Below $0.27 Mark
More from Cardano’s ecosystem:
How Cardano Manifests Voltaire Era with SanchoNet
