In the midst of declining bullish sentiment and mounting bearish pressures, Cardano (ADA) faces a challenging market environment and is unable to break the $1 barrier till 2024.
Cardano encountered a 50% price decline from last year, trading below as $0.5 in 2023. ADA fails to sustain any bullish momentum despite minor boomerang, resulting in the fluctuation of the coin’s market capitalization between $8 billion and $9 billing during its diminution.
The cryptocurrency market is manifesting slight indications of rejuvenation as prominent entities such as Ethereum and Bitcoin strive to uphold their crucial support thresholds. Against this backdrop, Cardano (ADA), officially regarded as a cryptocurrency with excellent fundamental attributes, has exhibited an uninspired performance. The coin’s failure to sustain its profits has caused dejection amid investors, leading to a depreciation of nearly 50% in its value since the recent year.
Recent observations indicate that the price of ADA is anticipated to persist below $0.5 for the entirety of 2023, with the possibility of not surpassing the $1 threshold until 2024. The cryptocurrency Cardano has been at the value of $0.5 since its onset in 2023, despite its price hovering around $0.25. The cryptocurrency surpassed the $1 threshold in April 2022, a milestone that has since been a distant recollection.
Related article: Cardano Chief Believes ADA Will Surpass Bitcoin and Ethereum as World’s Biggest Crypto Globally
Examining Cardano’s Bearish Outlook and Future Prospects
The token has exhibited a level of stability at the support level of $0.25, showing a tendency to rebound upon reaching this threshold on many occasions. In the event that this support proves unproductive, subsequent support levels can be observed at $0.22 and $0.2, representing vulnerable thresholds that may impede further downward movement.
From a technological view, the situation appears to be really extreme. The current trend of the 20-day Exponential Moving Average (EMA) is downward, as evidenced by its trajectory. This negative momentum is further supported by the Moving Average Convergence Divergence (MACD) indicator. The present value of the Average Directional Index (ADX) is 23.93, suggesting a significant downward trend in the market in the day chart.
Despite spikes, ADA has lacked the bullish momentum to propel its price upward substantially. The coin’s market capitalization has dwindled between $8 billion and $9 billion during its downswing, pointing to the need for more market confidence. ADA is trading at $0.2542, with a 24-hour decrease of 0.55% and a seven-day decrease of 1.12%.
Nevertheless, the potential for decentralized growth has not been enough to assess Cardano’s pessimistic market prospects. Project Catalyst plays a crucial role in the ecosystem by promoting community-driven innovation. It enables users to suggest and participate in projects, allocating funds to those that garner community backing.
Cardano Market Summary
Cardano’s struggle to gain traction suggests a bearish scenario that could extend well into 2024. Both technical and market indicators signal a continuing downward trend, making it a challenging environment for ADA bulls. While minor rebounds may occur, the general trajectory indicates that the token might not break the $1 resistance level anytime soon.
Related also: Cardano Displays Dominance by Surpassing Polkadot and Kusama in Developer Activity
Cardano vs SEC Dilemma
As reported by Fxcryptonews, the SEC has taken legal action against Coinbase and Binance, labeling Cardano (ADA) as a security in both instances. Charles Hoskinson, the creator of Cardano, and David Schwartz, CTO of Ripple, have challenged the SEC’s designation of ADA as a security. Hoskinson pointed out that the ICO was conducted in Japan without direct sales of ADA.
This classification by the SEC has notably impacted ADA’s market value, leading many global exchanges, particularly in the US, to remove ADA and cease its trading.
