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Cardano (ADA), a major player in the crypto world, has seen its price tumble by 50% from a high of $0.8100 in March to $0.385. Despite a positive move from the SEC, which has declared ADA as not a security, the token is still struggling with strong sell pressure. This has left traders and analysts worried about its short-term future.
Cardano Price Faces 50% Drop
Cardano (ADA) has experienced a major decline over the past four months. Its price has dropped by 50% from its high in March, and it fell even further by 60% before finding some stability in mid-July. This sharp decline shows ongoing negative sentiment in the market.
Even though ADA has shown a slight recovery recently, it remains far below its earlier highs. There is still heavy selling pressure on major trading platforms like Binance and OKX, as shown by the rising negative funding rates. These rates suggest that the bearish trend is continuing.
On-chain data also doesn’t point to a positive shift for ADA at the moment. However, there is some good news: the U.S. Securities and Exchange Commission (SEC) has stated that ADA is not a security. This regulatory clarity could be a positive step for ADA’s future.
Cardano Price In Bearish Court
Meanwhile, the technical indicators paint a grim picture for ADA, as the price recently dropped 4.6% to $0.385, with a risk of further declines if current market conditions persist.
However, the ADA chart shows a series of lower highs and lows, with the price trading below both the 50-day and 200-day exponential moving averages (EMA). The key support level is around $0.30, and if bears dominate, ADA might fall to its yearly low of $0.3165.
Analyst Says Buy The Dip
Despite the bearish trend, some analysts believe there might be a chance for a rebound. A report from Santiment highlights a recent spike in negative funding rates, which can sometimes signal an oversold condition.
Historically, such conditions have led to sharp recoveries as sellers are forced to buy back at higher prices. However, this strategy requires caution as prices could continue to drop if the market views ADA as excessively oversold.
Upcoming Cardano Hard FOrl
Looking ahead, the Chang hard fork could be crucial for Cardano. Scheduled to enhance the platform’s smart contracts, this upgrade may play a significant role in ADA’s future performance