Cardano is one of the major currencies that has been hit hard in today's chaotic cryptocurrency market: the coin lost 30% of its value in the last week. The decline and collapse of the broader market are the reasons for the coin's poor performance. The past 24 hours have remained bloody, with the total market capitalization facing a drop of more than 13%. The prices of the two major cryptocurrencies, Bitcoin and Ethereum, have fallen by 24% and 31% respectively since last week, showing the market's vulnerability to the spread of macroeconomic panic in private equity.
On-chain, Cardano has solidified its position as a major player in the cryptocurrency space. In a recent X post, the platform revealed that several metrics grew in July.
Judging from the metrics, the platform remains solid and has grown across the board. This should translate into greater gains or bullish investor behavior towards ADA. However, the current environment makes it impossible for investor confidence to remain high.
Cryptocurrency analyst Benjamin Cowen released an article detailing a worst-case scenario for the coin. However, online analysts have mixed opinions on ADA. Although ADA has barely moved since its peak in May, analysts like Ellert say the coin could surge again as it has in the past.
Bullish or not, Cardano is a tested system that has shown that market downturns will not stop its operations. As August arrives, the platform enters epoch 501, which means that Cardano has had more than 2,505 days without downtime. This is still the most notable achievement for the platform itself, as downtime is the bane of any blockchain network.
Despite this, investors still agree with the bullish views of some analysts. As the market turned from bullish to bearish, the price of staked ADA fell, causing the total value locked on the Cardano-related chain to drop by 15-30%. As the market continues to be bearish, selling pressure remains high.
If the market continues to fall, there is no reason for the bears to stop their dominance in the market. The coin’s position is untenable. As of the time of writing, the bears are currently trying to break the October 2023 price level of $0.302. If the bears succeed in taking this level, the coin will fall further and may return to the pre-2024 prices.
This unprecedented oversold market could also be an opportunity for bulls. After this week’s bearish breakout, ADA is trading at a significant discount, and bulls can accumulate ADA at lower prices, thus relieving pressure in the short term, giving the price enough time to stabilize.
If this happens, $0.302 will serve as a strong support level for the upside, reclaiming the June-July price range of $0.407 to $0.342.
