Bloody Monday: Cardano Not Spared From Bloodbath, Suffers 30% Loss
August 05 2024 - 4:00PM
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Cardano has been among the major coins that suffered miserably in
the chaotic crypto market today: the token lost 30% in value in the
last week. The broader market’s slip and crash are to be blamed for
the token’s poor performance. Related Reading: Stacks (STX) Drops
23%, But Recent Devs Might Slow The Trend The past 24 hours remain
bloody, with the total market cap facing an over 13% decrease.
Bitcoin and Ethereum, the two top cryptocurrencies, saw their
prices decrease by 24% and 31% respectively since last week,
showing the market’s vulnerability to the spreading macroeconomic
fears in private equity. Cardano Remains Great… Back In July
On-chain, Cardano solidified its position as a major player in the
crypto space. In a recent X post, the platform revealed several
metrics that increased in July. Cardano’s July 2024 On-Chain
Stats 📊 We witnessed steady growth in @Cardano‘s on-chain activity
last month – this momentum highlights Cardano’s dynamic, growing
ecosystem and the ongoing engagement of the community. Let’s
continue building a decentralized future together. 🧱
pic.twitter.com/fvhwiG0qrq — Cardano Foundation (@Cardano_CF)
August 5, 2024 Metrics-wise, the platform remains solid with an
increase in every aspect. This should translate to bigger gains or
bullish investor behavior on ADA. However, the current environment
dashed any possibility to keep investor confidence high.
Benjamin Cowen, a crypto analyst, released a post that details a
worst-case scenario for the token. However, analysts online are
split in opinion on ADA. Although ADA shows almost no change in
price since it peaked in May, analysts like Ellert show the
possibility that the token might rocket upwards again just like
what it did in the past. My friends, It is time.
pic.twitter.com/sWR7yXDtgS — Benjamin Cowen (@intocryptoverse)
August 2, 2024 Bullish or not, Cardano is a tested system that
shows market downturn won’t stop its operations. As August steps
forward, the platform enters its 501st epoch, meaning Cardano
didn’t have downtime for over 2,505 days. This remains the most
notable achievement of the platform itself as downtimes are the
bane of any blockchain network. Despite this, investors are
still on board the bullish thesis some analysts are pushing. Staked
ADA stooped low as the market flipped from bullish to bearish,
prompting a 15-30% decrease in total value locked on
Cardano-related chains. The selling pressure remains at a
high level due to the market’s continuous bearishness. It Doesn’t
Look Good For ADA If the market continues to push downward, there
is no reason for the bears to stop their dominance within the
market. The token’s position is undefendable. As of writing, the
bears are currently trying to break through the October 2023 price
level of $0.302. If the bears succeed in taking this level, the
token will fall more, possibly returning to pre-2024 prices.
Related Reading: Binance Coin In Turmoil: Nearly 10% Value Erased
In Market Shake-Up This unprecedented market oversell could also be
an opportunity for the bulls. With ADA at a steep discount after
this week’s bearish breakthrough, bulls can accumulate ADA at a
lower price, thus easing the pressure in the short term giving
enough time to stabilize the price. If this happens, $0.302 will be
a strong support level for a shot upward, retaking the June-July
price range of $0.407-$0.342. Featured image from Pixabay,
chart from TradingView
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