Cardano Faces Steep Decline as Technicals Signal Further Drop
Cardano’s price has plummeted by over 51% since its peak in November. Currently, ADA trades at $0.646, with a market cap of $22.7 billion.this decline mirrors the broader crypto market’s downturn, with Solana, Binance Coin, and Avalanche also entering bear territory.
Technical indicators suggest more trouble for ADA. A death cross looms, a pattern where the 200-day and 50-day Exponential Moving Averages (EMA) are about to cross, signaling a potential further decline. The 200-day EMA is at $0.729, while the 50-day EMA is at $0.736. This narrowing gap hints at a downward trend. A death cross, where these EMAs cross while trending down, often precedes important price drops. In May 2022, a similar pattern led to a 40% fall. The spread between these EMAs has shrunk, increasing the risk of a continued slide.If this pattern completes, the price could fall to $0.515, its February low. A death cross usually triggers a ample drop.The last occurrence in may 2022 saw a 40% plunge. The golden cross, which previously boosted prices by 200%, is now reversing. The descending channel and head-and-shoulders patterns also suggest a bearish trend.
Cardano’s ecosystem faces significant hurdles. Its total value locked has dropped to $314 million,far behind newer chains like Berachain ($2.97 billion) and Sui ($1.2 billion). Stablecoin assets are also low at $30 million compared to Berachain’s $1.3 billion. Key projects, like BitcoinOS integration, remain unlaunched. An ADA ETF could help, but current ETH ETF outflows show investor preference for spot Bitcoin funds.
