Cardano has been among the major coins that suffered miserably in the chaotic crypto market today: the token lost 30% in value in 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 total 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 Remains Great… Back In July
On-chain, Cardano solidified its position as a major player in 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 steady growth in @Cardano‘s on-chain activity last month – this momentum highlights Cardano’s dynamic, growing ecosystem and the ongoing engagement of the community.
Let’s continue building a decentralized future together. pic.twitter.com/fvhwiG0qrq
— Cardano Foundation (@Cardano_CF) August 5, 2024
Metrics-wise, the platform remains solid with an increase in every aspect. This should translate to bigger gains or bullish investor behavior on ADA. However, the current environment dashed any possibility to keep investor confidence high.
Benjamin Cowen, a crypto analyst, released a post that details a worst-case scenario for the token. However, 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 possibility that the token might rocket upwards again just like what it did in the past.
My friends,
It is 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 remains the most notable achievement of the platform itself as downtimes are the bane of any blockchain network.
Despite this, investors are still on board the bullish thesis some analysts are pushing. Staked ADA stooped low as the market flipped from bullish to bearish, prompting a 15-30% decrease in total value locked on Cardano-related chains.
The selling pressure remains at a high level due to the market’s continuous bearishness.
It Doesn’t Look Good For ADA
If the market continues to push downward, there is no reason for the bears to stop their dominance within the market.
The token’s position is undefendable. As of writing, the bears are currently trying to break through the October 2023 price level of $0.302. If the bears succeed in taking this level, the token will fall more, possibly returning to pre-2024 prices.
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This unprecedented market oversell could also be an opportunity for the bulls. With ADA at a steep discount after this week’s bearish breakthrough, bulls can accumulate ADA at a lower price, thus easing the pressure in the short term giving enough time to stabilize the price.
If this happens, $0.302 will be a strong support level for a shot upward, retaking the June-July price range of $0.407-$0.342.
Featured image from Pixabay, chart from TradingView
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