- Cardano’s price sees a significant drop, with the potential of not crossing the $1 mark until 2024.
- SEC’s classification of ADA as a security further compounds its market challenges.
The Tumultuous Terrain of Cardano’s Market Performance
In the tempestuous world of cryptocurrency, Cardano (ADA) currently finds itself grappling with a mounting bearish sentiment. It has seen a significant dip, a stark 50% plummet since the last year, with the coin’s valuation floating under the $0.5 mark throughout 2023. Despite its once-strong standing – having achieved a commendable $1 in April 2022 – the token’s future now seems riddled with uncertainties.
Bearish Undertones: Cardano’s Subdued Outlook
Amidst the broader context of cryptocurrencies, where giants like Bitcoin and Ethereum work diligently to maintain their market presence, Cardano‘s floundering trajectory is evident. Historically celebrated for its robust fundamental underpinnings, ADA’s recent performance paints a subdued picture. The current year hasn’t been favorable, with the coin starting at and likely concluding 2023 around the $0.5 mark, pushing the hope of reclaiming the $1 milestone to possibly 2024.
Navigating through its pricing matrix, ADA consistently exhibits resilience at the $0.25 support level. This has been a critical point from which rebounds have historically been observed. However, should this cushion falter, ADA might find solace at the subsequent support stages pegged at $0.22 and $0.2.
But the technological indicators project a more somber narrative. The 20-day Exponential Moving Average (EMA) showcases a downtrend, with the Moving Average Convergence Divergence (MACD) reinforcing this bearish momentum. The Average Directional Index (ADX), currently at 23.93, further attests to a pronounced downward trend on the day’s chart.
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As ADA hovers at $0.2564, witnessing a minor 24-hour decrement of 0.29% and a more pronounced seven-day decline of 3.67%, its market capitalization fluctuates between $8 and $9 billion.
One would consider the presence of ‘Project Catalyst’ – Cardano’s community-driven innovation initiative – as a potential buffer. It empowers members to nominate and endorse projects, thereby distributing resources to community-favored ventures. Alas, even this decentralized development pillar has been unable to mitigate Cardano’s gloomy market outlook.
The SEC Hurdle: A Regulatory Setback
Adding to ADA’s woes, The Crypto Basic reported the SEC’s move to classify Cardano as a security. This action catalyzed lawsuits against giants like Coinbase and Binance. Cardano’s founder, Charles Hoskinson, alongside Ripple’s CTO, David Schwartz, countered the SEC’s designation. Their defense centered on the ICO’s occurrence in Japan, negating any direct ADA sales. However, this regulatory challenge has left an indelible mark, causing several global exchanges, particularly in the US, to discontinue ADA trading.
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