Cardano has been amongst the important thing coins that suffered miserably throughout the chaotic crypto market today: the token lost 30% in value throughout the last week. The broader market’s slip and crash are to be blamed for the token’s poor performance.
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The past 24 hours remain bloody, with the entire market cap facing an over 13% decrease. Bitcoin and Ethereum, the two top cryptocurrencies, saw their prices decrease by 24% and 31% respectively since last week, showing the market’s vulnerability to the spreading macroeconomic fears in private equity.
Cardano Stays Great… Back In July
On-chain, Cardano solidified its position as a serious player throughout the crypto space. In a recent X post, the platform revealed several metrics that increased in July.
Cardano’s July 2024 On-Chain Stats 📊
We witnessed regular growth in @Cardano‘s on-chain activity last month – this momentum highlights Cardano’s dynamic, growing ecosystem and the continuing engagement of the community.
Let’s proceed constructing a decentralized future together. 🧱 pic.twitter.com/fvhwiG0qrq
— Cardano Foundation (@Cardano_CF) August 5, 2024
Metrics-wise, the platform stays solid with an increase in every aspect. This might translate to greater gains or bullish investor behavior on ADA. Nonetheless, the current environment dashed any possibility to keep up investor confidence high.
Benjamin Cowen, a crypto analyst, released a post that details a worst-case scenario for the token. Nonetheless, analysts online are split in opinion on ADA. Although ADA shows almost no change in price since it peaked in May, analysts like Ellert show the prospect that the token might rocket upwards again much like what it did before now.
My friends,
It’s time. pic.twitter.com/sWR7yXDtgS
— Benjamin Cowen (@intocryptoverse) August 2, 2024
Bullish or not, Cardano is a tested system that shows market downturn won’t stop its operations. As August steps forward, the platform enters its 501st epoch, meaning Cardano didn’t have downtime for over 2,505 days. This stays essentially essentially the most notable achievement of the platform itself as downtimes are the bane of any blockchain network.
ADA market cap currently at $10.4 billion. Chart: TradingView.com
Despite this, investors are still on board the bullish thesis some analysts are pushing. Staked ADA stooped low since the market flipped from bullish to bearish, prompting a 15-30% decrease in total value locked on Cardano-related chains.
The selling pressure stays at a high level as a consequence of the market’s continuous bearishness.
Source: DefiLlama
It Doesn’t Look Good For ADA
If the market continues to push downward, there isn’t any reason for the bears to stop their dominance contained in the market.
The token’s position is undefendable. As of writing, the bears are currently attempting to interrupt through the October 2023 price level of $0.302. If the bears reach taking this level, the token will fall more, possibly returning to pre-2024 prices.
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This unprecedented market oversell can be a possibility for the bulls. With ADA at a steep discount after this week’s bearish breakthrough, bulls can accumulate ADA at a less expensive price, thus easing the pressure throughout the short term giving enough time to stabilize the worth.
If this happens, $0.302 will likely be a robust support level for a shot upward, retaking the June-July price range of $0.407-$0.342.
Featured image from Pixabay, chart from TradingView