- Cardano invalidated all gains noted after Vasil upgrade’s arrival date’s announcement.
- The Cardano community’s support has also been waning for the last few months.
- ADA on the charts fell by 7.94% resulting in a decline in market cap, which benefitted XRP.
Although many cryptocurrencies have lost significantly this year, Cardano will always be amongst the topmost assets as its troubles still have not ended. Even the arrival of its most important upgrade, the Vasil hard fork, has not triggered any rise or recovery for the asset, which was come to be known as the third-generation cryptocurrency.
Cardano community backs off
One of the most important parts of Cardano’s ecosystem is its community, and over the last couple of months, most of the users have begun pulling their punches. The overall presence of ADA holders noted across the network has reduced to just 62k on a daily basis which once used to be as high as 158k on average. The series of crashes since January resulted in this decline.
Cardano active addresses
Consequently, as investors began disappearing, the overall transactions on the network reduced significantly as well. At this moment, total transactions every day have come down to 63k, making the active investor-to-transaction ratio near 1:1.
Cardano network transactions
The reason why this is important is that an asset is fuelled by the bullishness of its investors, and given Cardano’s present condition, it needs as much support as it can garner. As it is, the lack of recovery on the charts has resulted in the cryptocurrency losing its position to XRP, which surpassed ADA in terms of market capitalization over the last 24 hours. This will make the former a more favorable asset for the investors, which could further cause a drawdown for ADA.
This is where Cardano could be headed
Ahead of the Vasil hard fork, which is scheduled for September 22, there are a lot of possibilities about where ADA could be headed. However, the most crucial move for the altcoin at the moment is to gain strong support in order to sustain the unprecedented sentiments that would come with Vasil.
Cardano daily chart
This strong support resides above $0.600 since it not only brings ADA closer to the support range but also flips the 23.6% Fibonacci level into support. If ADA can manage to keep above the $0.409 support line over the next two weeks and bounce off the $0.520 mark, it might be able to make it to the support range between $0.595 and $0.747.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.