With the dream of a decentralized internet, Cardano took the major step towards the proof of stake validation process, which was later adopted by its competitor ETH. While ETH failed to make a bullish trend out of this movement, ADA has capitalized on decent gains since its initial ICO release.
The decline of this token can be attached to the back-to-back negativity being uploaded by crypto projects, while the markets and world resuming back to the centralized mode of operations since COVID-19 impacts have returned to historical lows in major developing and developed countries. With the hype of new variants dropping, cryptocurrencies have also lost their hype as disruptive tools.
Using the proof-of-stake protocol brought this cryptocurrency to the limelight, and it has seen quite an up move since its initial release in 2017. Given the recent profit booking scenario in the broader crypto market, ADA price action showcases a mixed reaction from holders. Despite losing value, the volumetric movement has been historically lower as compared to the bull cycle of this token.
Cardano Price Analysis
From January 2021 to September 2021, Cardano made a gain of 2700%, meaning 27x ROI, while the trend reversal witnessed in September 2021 has made a mockery of the gains. ADA has lost 89% of its peak value from September 2021 by the end of November 2022. The technical prerogative to this decline is clearly distrust and better movement in the cash and stock markets.
ADA price action on daily charts shows consecutive breaking support levels at repeated intervals. The minor volatility just confirms minor buying trends, while volumes have been up and down throughout the process. RSI has retracted back to the near-oversold range, while MACD confirms a bullish crossover. As a result of the mixed indications, the last few days have seen ADA moving in a minor 3% volatility zone, carrying a high probability of breaching the current support level of $0.30.
The monthly candlestick pattern confirms the stance that ADA has failed to initiate a single buying rally since September 2021 and falls like a well-planned dumping. Reaching $0.30 from $3 is a huge shock, but the expectation doesn’t showcase bullish movements any time sooner.