Cardano is one of the major coins that have suffered miserably in today’s chaotic crypto market: the token lost 30% in value over the past week. The broader market’s slip and crash are responsible for the token’s poor performance.
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The last 24 hours remain bloody, with the total market capitalization of more than 13% decrease. Bitcoin and Ethereum, the two largest cryptocurrencies, saw their prices fall by 24% and 31% respectively since last week, demonstrating the market’s vulnerability to the fallout. to spread macroeconomic fears in private equity.
Cardano continues to be great… In July
On-chain, Cardano solidified its position as a major player in the crypto space. In a recent X post, the platform revealed several metrics that rose in July.
Cardano’s On-Chain Stats as of July 2024
We witnessed steady growth in @Cardano‘s on-chain activity last month – this momentum highlights Cardano’s dynamic, growing ecosystem and continued community engagement.
Let’s continue to build a decentralized future together.
pic.twitter.com/fvhwiG0qrq
— Cardano Foundation (@Cardano_CF) August 5, 2024
Statistically, the platform remains solid with an increase in every aspect. This should translate into bigger gains or bullish investor behavior on ADA. However, the current environment made it impossible to maintain investor confidence.
Benjamin Cowen, a crypto analyst, issued a message with a worst-case scenario for the token. However, online analysts are divided in their opinions about ADA. Although ADA shows virtually no price change since its peak in May, analysts say Ellert show the possibility of the token skyrocketing again, just as it did in the past.
My friends,
It’s time. pic.twitter.com/sWR7yXDtgS
— Benjamin Cowen (@intocryptoverse) August 2, 2024
Bullish or not, Cardano is a proven system that shows that a market downturn will not halt operations. As August comes forward, the apron comes comes in the 501st era, meaning Cardano had no downtime for over 2,505 days. This remains the most notable achievement of the platform itself, as downtime is the bane of any blockchain network.
Nevertheless, investors still favor the optimistic view that some analysts espouse. ADA stakes fell low as the market turned from bullish to bearish. to turn on a 15-30% decline in the total value of Cardano-related chains.
Selling pressure remains high due to the ongoing bearish market.
It doesn’t look good for ADA
If the market continues to move downward, there is no reason for the bears to stop their dominance of the market.
The token’s position is indefensible. At the time of writing, the bears are currently trying to break the October 2023 price level of $0.302. If the bears manage to reach this level, the token will fall further and possibly return to pre-2024 prices.
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This unprecedented overselling in the market could also be an opportunity for the bulls. With ADA at a sharp discount after this week’s bearish breakout, bulls can accumulate ADA at a lower price, easing short-term pressure, allowing enough time for the price to stabilize.
If this happens, $0.302 will be a strong support level for an increase, recapturing the June-July price range of $0.407-$0.342.
Featured image from Pixabay, chart from TradingView
