Cardano Slumps to 15-Month Low as Bear Cycle Persists
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The CEO also noted that no announcement on the project at the moment, would have any effect on the price of the crypto asset. This explains why the ADA price has continued to struggle despite the network’s improving technical performance and the booming number of users.
Previously regarded as one of the top cryptocurrencies to invest in, thanks to its volcanic performance in 2021, ADA has become a shell of its glory days in 2022, plunging by over 43% year-to-date (YTD). The cryptocurrency is also down by almost 80% from its record high of $3.160 recorded in early September, the eve of the Alonzo network update launch.
According to data from Input Output Hong Kong (IOHK), Cardano’s host company, the network has almost 900 Cardano-based projects in the works. Four months ago, the network recorded a milestone in ADA holders, as the number of ADA wallets crossed three million.
However, crypto analytics platform Messari recently revealed that the number of active addresses on the Cardano blockchain has plunged to its lowest point since August 2021.
Meanwhile, Cardano has yet to launch its highly-anticipated app and currently sits at the number 31 spot in terms of total value locked (TVL). DeFi TVL has also suffered a massive downturn with the recent market trend. According to data from DefiLlama, Minswap and SundaeSwap have lost 41% and 36%, respectively, over the last month.
Key Cardano Levels to Watch — May 9
ADA resumed its downward trend aggressively on Monday, as the cryptocurrency shaved 10% of its value. The eighth-largest cryptocurrency has now breached the $0.700 floor, extending losses to $0.665, its lowest point since February 2021.
The cryptocurrency is on track to retracing towards the midpoint on my channel highlighted on the daily chart, where the $0.500 level resides. This bearish momentum comes as risky capital markets continue to suffer a massive outflow of investors into safer assets as central banks across the globe become more aggressive with their monetary policies.
Meanwhile, our resistance levels are $0.800, $0.900, and $1.000, and our support levels are $0.600, $0.500, and $0.400.
Total Market Capitalization: $1.51 trillion
Cardano Market Capitalization: $22.3 billion
Cardano Dominance: 1.47%
Market Rank: #8
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