Analysts are constantly being divided on Cardano outlook, with some adopting a bearish stance while others remain optimistic about its potential for growth
The developers have recently implemented an important milestone towards the realization of full decentralization and community-driven governance in the Voltaire Chang hard fork.
In this regard, ADA holders are now able to contribute directly to changes over the future of the network, placing great value on the sustainability and resilience of the token. Noticeably, notwithstanding this pivotal advance in development, ADA’s price struggles around $0.35, which it has held since early August.
Cardano’s Struggle for Momentum
Up to the end of July, ADA price had been on a wild ride, surging to almost $0.80 on March 14, only to drop to a low of $0.32 by July 5. This was followed by a 42% rebound to $0.45 on July 17, to then be erased as the price settled to a new low of $0.27 on Aug. 5.
The brief rally to $0.40 on Aug 24 lifted hopes that were very short-lived as the price began its reversal, breaking through the psychologically important $0.35 level, which was thought to have marked the beginning of the local uptrend.
Now trading at levels above $0.35, the inability by the altcoin thus far to sustain upward momentum says this cryptocurrency could continue in its bearish phase of potential further declines.
Crash to $0.15 Despite September Surge?
Despite ADA excellent performance at the close of September, some market analysts remain skeptical and advise participants to short ADA. According to them, the bull momentum has not entirely re-established itself in the market.
Market analyst RayTrader has updated his bearish prediction for Cardano on TradingView. He acknowledged ADA’s movement into the range of $0.40 on September 26 but still predicted it would drop as low as $0.16 and $0.15 before a possible trend reversal into a bull market.
Credit: TradingView
The current Cardano price is $0.35, and a slip back to this level would represent a 61% loss for investors today. While ADA has not been at this level since December 2020, it can still happen, says RayTrader. A crash to this range amidst the present uptrend sentiment.
RayTrader updated his bearish outlook to suggest that ADA slip below the $0.40 level created an excellent opportunity to sell the coin short, establishing a near-term target of $0.25. Having seen ADA slip to $0.3718 with Monday’s broader market downturn, RayTrader maintained, “Short sellers can keep their positions open, as there is still much downside potential before the likely local bottom at $0.15.
This bearish analyst insinuated that traders who are satisfied with profits from shorting ADA might want to liquidate some positions along the way but he feels that the much more significant profits will come to those who remain patient as the $0.15 target is reached. As such, he thinks this level will likely mark the bottom and probably lay the foundation for a big bull run.
Bearish Price Action, Bullish On-Chain Growth
RayTraderhe remains significantly bearish on ADA, but other market analysts hold a bullish outlook.
While the price action of Cardano has been somewhat uninteresting, according to crypto expert @CryptoFaibik, its network isn’t. Celebrating seven years since the mainnet was turned on with zero hours of downtime, continuous developments in the chain ensure that its growth is stable and progressive.
Credit: X.com
ADA weekly development report of last week shows a 4.24% increase in the number of projects building on the blockchain, at 1,376, pointing to high developer activity. The number of native tokens on the network also increased by 9.7% to stand at 10.40 million, with token policies surging 78.8% to hit 168,811.
The token also attracts fresh interest, which can influence ADA’s price, with the highly expected Midnight Protocol testnet. The latest announcement reported that for developers, the Midnight Protocol is now live, meaning the important milestone for the platform has finally been reached.
It also pointed out that the number of smart contracts being deployed keeps increasing, with 88,340 active Plutus scripts-a number considerably higher. Transaction volume reached 96.94 million from 82.7 million the previous month, which signifies increased adoption of the Cardano ecosystem.
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