Cardano has recently faced a significant downturn, with its price dropping to $0.6065 on October 30. This represents a steep 40% decline from its August high of $1.0196. In light of these developments, analysts are raising eyebrows over the formation of a death cross on the ADA chart—an ominous pattern typically associated with further price declines.
The death cross occurs when the 50-day exponential moving average (EMA) crosses below the 200-day EMA, a signal that often precedes sustained bearish trends. Most notably, previous instances of this pattern in Cardano’s history have resulted in considerable percentage losses, intensifying the concerns surrounding the token’s future.
At its earlier peak of $1.0196, Cardano seemed to be on a solid trajectory. However, a break below the crucial support level of $0.6858, which marked the August low, has posed a significant challenge for the token. Current technical formations, including a head-and-shoulders pattern and a bearish flag, suggest that traders may want to brace for more troubling navigations ahead.
In a changing landscape, analysts project that Cardano’s price may experience a decline of an additional 20%, possibly hitting the $0.50 mark by 2025. This target aligns with the oversold conditions seen back in July and serves as a psychological threshold for traders.
On the regulatory front, the odds of Cardano’s ETF approval have substantially decreased. Once standing at a promising 96% in September, current assessments place it at 68%. This sharp decline reflects a waning interest from institutional investors with regard to ADA-related financial instruments.
While other cryptocurrencies like XRP and Solana have seen a surge in ETF applications, Cardano’s single application by Grayscale draws attention to the diminishing appetite for ADA products. Solana and Hedera recently celebrated the successful launch of their ETF products, while Cardano remains in the shadows, waiting for approval.
The metrics appear equally bleak when evaluating Cardano’s ecosystem. The network lags behind competitors like Ethereum, Solana, and Binance Smart Chain, boasting less than $300 million in total value locked. This disparity underscores the declining activity within Cardano’s ecosystem, which contributes to its perceived risk for institutional investors.
Given these developments, market participants are paying close attention to the $0.6858 level as a bellwether for Cardano’s future. Should the token continue to trade below $0.50, it would signify a new low, raising further questions about its long-term viability. Conversely, a breakthrough above $0.6858 could alter the currently bearish forecast, possibly making way for a rally towards $0.9765.
In conclusion, Cardano’s technical indicators combined with diminishing institutional interest paint a concerning picture for the ADA token. As the market shifts and competition intensifies, only time will tell if Cardano can regain lost ground or if further decline is inevitable.
