Cardano’s decline is a case of heavy sellers and fewer buyers. This scenario implements a lower demand for ADA tokens causing a continued decline in their market value. What started in August 2021 lasted till March 2022, but only after a month of buying sentiment that the small bullishness faded into a similar negative sentiment.
The $1.25 peak in the last week of March 2022 was the last high that initiated a fresh sell-off. ADA is holding on to its market rank as every other altcoin depreciates. It still holds a net asset of $15,356,836,070.
Cardano loses buying sentiment; the minor retracement in the early hours of May 11 reversed into a complete sell-off of assets. ADA gets immediate support from $0.442 levels as the marked price trend support indicates the cumulative price zone for consolidation before the breakout.
Cardano seems to be one of the altcoins suffering from the crypto crash led by the UST and BTC sell-off. There seems to be no fundamental weakness, but the fear of altcoins crashing to zero has created a panic situation, which could ideally last for a few more weeks. Read ADA price prediction to know when the prices may start recovery.
Adding more tokens at this point is viable only for those investing in altcoins like ADA systematically. However, it is not a good time for bulk buying as changing dynamics could force further decline, and one should avoid getting trapped in such a situation.
ADA price hit a fresh low of $0.383 today but has retracted to $0.463. It concludes a jump of 11% in one hour. The historical support between $0.32 and $0.44 could help ADA consolidate for some time before buying sentiment picks up again.