Cardano price continued its downward trend on Wednesday as cryptocurrencies continued their divergence from American stocks. ADA crashed to a low of $0.3600, which was the lowest level since October 13. Once valued at over $90 billion, Cardano has seen its total market cap crash to about $12 billion.
Cardano price has crashed by more than 80% from its all-time high. There are several reasons for this, including the fact that most cryptocurrencies have been in a steep sell-off after peaking in November last year.
However, Cardano has a fundamental challenge that has made its price crash harder than other large-cap peers. The issue is that its adoption by developers has been below par. In the past few months, Charles Hoskinson and Cardano have said that thousands of developers are building in the ecosystem.
The challenge with this is that Cardano has not had a runaway success like other similar chains like Ethereum and BNB. According to DeFi Llama, Cardano’s DeFi ecosystem has a total value locked (TVL) of just $63 million. This makes it the 31st biggest player in the industry. Many of its DeFi apps have a TVL of less than $1 million.
At the same time, Cardano has a tiny market share in other industries like gaming and the metaverse. Instead, Ethereum has maintained a strong market share in these industries even as they remain in a cyclical decline. In addition, Cardano has lost the hype that it had in 2021 when people expected it to become the most viable alternative to Ethereum.
ADA price has been in a strong sell-off in the past few months. In this period, it managed to move below the support at $0.4045, which was the lowest level on July 13. The coin has also remained below all moving averages while the Relative Strength Index (RSI) has moved below the oversold level.
Therefore, Cardano will likely continue falling as sellers target the next support level at $0.30, which is about 17% below the current level. A move above the resistance at $0.40 will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 05:42