The Cardano price has collapsed. ADA is trading at $1.2675, which is about 60% below the highest level this year. The current price is the lowest it has been since August while its total market capitalization has dropped to $39 billion. At its peak, Cardano had a total market cap of more than $90 billion.
Cardano has had a relatively mixed year. Between January and September, the coin was up by more than 2,500%. This performance helped to propel it to become one of the top-ten biggest cryptocurrencies in the world.
There were three main reasons why the Cardano price prediction surged. First, many investors bought it because of its founder. Charles Hoskinson, the founder of the network, was also among the founding team of Ethereum. As such, many investors believed that the platform would replicate what Ethereum had done. This also explains why Polkadot has done well.
Second, the positive media reports helped to push its price higher. Most analysts believed that its proof-of-stake consensus would help bring more traders to the network. That’s because many woke investors shunned coins using a proof-of-work method.
Third, the ADA price also jumped because of the launch of the Alonzo hard fork. This fork introduced smart contracts to the network. As such, many investors bought Cardano hoping that it would become a key alternative to Ethereum.
Therefore, the collapse of Cardano is mostly because of the underwhelming performance of the smart contracts network. It is hard to pinpoint the successful projects built on Cardano. Also, the industry has become very competitive with the likes of Avalanche and Solana taking the lead.
This is why Cardano has decided to branch out into the decentralized exchange space through the launch of AdaSwap. AdaSwap is to be the first decentralized exchange on the Cardano network. AdaSwap is now
looking to deepen this entrance by exploring DEX listing and integration for COTI’s Djed stablecoin. This partnership will allow users of AdaSwap to use Djed as a stablecoin alternative to other existing stablecoins such as Tether, DAI or USD Coin. Djed is a Cardano-based stablecoin which is built on the COTI ecosystem. COTI’s proprietary consensus algorithm (Trustchain) is the driver for Djed. The listing also provides an avenue for traders to trade tokens which are paired with Djed.
On the daily chart, we see that the ADA price has been in a spectacular decline in the past few months. Subsequently, the coin has formed a death cross, which happens when the 50-day and 200-day moving averages makes a crossover. The coin has also formed a bearish consolidation pattern and is approaching the key support at $1.0175.
Therefore, the path of the least resistance for Cardano at this point is to the downside. As such, there is a likelihood that it will crash to about $1.
This post was last modified on %s = human-readable time difference 03:26