Key Facts: The Cardano network has been in constant development since its launch, albeit at a slow pace. ADA registers an increase of 50% so far in 2024, despite its recent decline. The Cardano network's native cryptocurrency, ADA, is experiencing disappointing performance for its investors. Although it has registered a 50% increase so far in 2024, it is trading 80% below its all-time high (ATH) achieved three years ago of $3.10 (USD). This comes despite bitcoin (BTC) rising to new ATHs in the last month, prompting various cryptocurrencies to do the same. Meanwhile, the ADA market also reacted upwards, but more moderately, reaching USD 0.80, a level it had not seen in almost two years. However, he undid this as soon as the overall market showed a decline.
ADA is currently trading at USD 0.58, an area that has functioned as medium on multiple occasions over the past four months. This can be seen below.
ADA price in the last three months. Source: TradingView. On the social network Reddit, different users stated that have performed better trading “random shitcoins” than with ADA. “If cardano doesn't surpass his ATH in this bull cycle, I will be selling and never investing in this shit again,” one expressed, venting his disappointment. Another user commented that “ADA continues to bleed against BTC like a wounded dog,” since so far this year it has fallen 30% compared to its price. Meanwhile, bitcoin registers a 55% increase against the dollar so far in 2024.
Despite the discontent of its investors due to the low performance, some maintain their bullish expectations long term for ADA. “Well-built things take time. Driving a fast, cheap and poorly built motorcycle is never the same as driving a Mercedes,” considered one user on the social network. Some of the factors motivating the bulls are that the network continues to execute updates to improve its scalability and its adoption grows. Examples of the latter are the almost 700% annual increase in stablecoin capitalization on Cardano, as well as the launch of the decentralized exchange Axo last month. Beyond the constant development since its launch in 2017, This is not translating into a sustained price increase. “The frustration is real, man. “I keep going back to the fundamentals of the project and have to tell myself that I am not crazy for believing that Cardano has the best path forward from a technical perspective,” said one user. “Maybe technical nerd shit isn't enough to make a project successful? He usually does it, but the price of a safe asset puts a damper on that feeling, especially when you have so many competitors that shine when it comes to price action,” he added. According to one ecosystem enthusiast, “the only thing that can save Cardano is the governance protocol.” He maintains that voting on initiatives that help the network stand out from the competition will be the way to boost the price of ADA. This comment comes after Charles Hoskinson, founder of Cardano, say that an important thing to do is put decentralized governance into operation.
How will the price of ADA continue?
The trader known on the social network X as DefiTracer he pointed that bitcoin is approximately 20 days away from its halving. This event, which reduces the issuance of the currency by half every four years, reduces its supply in the market, causing its price to rise. This is key for the cryptocurrency market, including ADA. He maintains that, as always happens before the halving, altcoins will explode upwards. He recalled that, in the last bullish cycle that occurred in 2020-2021, ADA recorded a 130x price increase. According to the trader, in the current bullish cycle, other cryptocurrencies, which are generating greater attention, will have returns like the one ADA had in the previous one. However, he suggests that as altcoins generally react higher at this stage, ADA may scale higher than current prices. According to the technical analysis, if ADA maintains support at USD 0.58 as it has achieved at times in the last four months, it is possible for it to return to the resistance of USD 0.80. That level acted as a floor two years ago, so it is a psychologically strong area that can function the same again if demand gains strength. If it exceeds USD 0.80, The next relevant objective for the market is to recover the level of USD 1.2. That is because, as seen below, such a price area has proven to be a support that held during the last cycle.
ADA price in the last three years. Source: TradingView. However, if the market loses current support, it is possible that it finds a floor at USD 0.44, since it was the minimum it reached in 2024. A setback like this could occur if bitcoin accentuates its decline. As reported by BitcoinDynamic, bitcoin fell to USD 65,000 today as the halving approaches, an event that usually drives temporary profit-taking in the coming days. According to financial analyst Florian Grummes, the currency has a chance to fall to USD 51,500 to regain demand strength.