cardano Price Plunges: A bearish Trend Continues to Unfold
Cardano (ADA) has experienced a significant price drop in the recent weeks. It fell by 21% from its May peak, indicating a downward trend. As the price drops, so does investor confidence.
On-chain data reveals a concerning trend among Cardano investors. The number of ADA holders has decreased to 4.49 million, according to Santiment. This is a fall from the 4.55 million in May. Major players in the cryptocurrency market,known as whales,are also selling their coins.
- Whales holding between 100 million and 1 billion ADA now own 3.02 billion coins, down from 3.4 billion in April.
- Those holding between 1 million and 10 million have reduced their holdings to 5.7 billion from a high of 6 billion this year.
Cardano’s performance in the decentralized finance sector is also dwindling. The total value locked in decentralized finance has dropped to $391 million. The total decentralized exchange (DEX) transactions have reached $4 billion. However, Unichain, a recent entry, has surpassed these figures with a TVL over $702 million and DEX volume of over $14 billion.
Cardano is betting its future growth on integrating with Bitcoin (BTC). The plan is to allow BTC holders to stake their coins and earn rewards. This could perhaps push Cardano’s TVL higher. However,similar technology already exists and is widely used. Such as, SolvProtocol and Lombard Finance, major staking platforms, hold billions in assets.
Technical analysis of ADA price shows a continued bearish trend. the coin has broken out of a double-top pattern. It’s also below the 50-day and 200-day moving averages, indicating further decline. A death cross, a signal of a bearish trend, is also possible. The price may fall to the psychological level of $0.50.
Cardano is also facing an audit due to serious allegations made by NFT artist Masato Alexander. He claims that Charles Hoskinson, one of Cardano’s co-founders, misappropriated 318 million ADA during a 2021 hard fork. Hoskinson has denied these claims.This situation could significantly impact the price of ADA. If the audit clears the project, investors’ confidence could return. However,if it reveals further issues,the price may continue its downward trend.
