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With Bitcoin’s astronomical surge, the crypto market has witnessed an overall bullish trend, touching a new mark in the global market cap. However, with each passing day, investors are witnessing several altcoins rise and fall, and one such cryptocurrency that has been caught under intense bearish domination lately is Cardano. Despite bringing many developments to the platform, including DJED stablecoin and Valentine upgrade, the token has failed to join the market’s bull run and is currently underperforming.
Why Is Cardano Underperforming?
Despite its promising technology and a growing community of supporters, Cardano has been underperforming in the crypto market. There are several reasons why Cardano has been underperforming in recent months.
Firstly, Cardano has been facing tough competition from other cryptocurrencies. Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have been experiencing significant growth, and other cryptocurrencies like Binance Coin and MATIC have been outperforming Cardano.
Secondly, Cardano has been facing criticism for its slow pace of development. The platform has been developing since 2015 but still hasn’t deployed all of its promised features. This has caused some investors to lose faith in the project and switch to other cryptocurrencies for a better yield during the bull run.
Thirdly, Cardano has been criticized for its lack of real-world use cases. While the platform promises to be more efficient and secure than other blockchain platforms, it still hasn’t been widely adopted by businesses and governments, making it a less preferable investment option in the crypto market.
As a result, Cardano investors seem to be experiencing a significant amount of bad luck within the crypto market for a few weeks. Despite reaching a high of $3, the digital asset is now even struggling to reach $0.5 as it has repeatedly dropped below weekly lows. Consequently, this has resulted in a decline in profitability, causing many investors to find themselves in a loss-making position.
ADA Price Fails to Hold Its Uptrend
As Bitcoin (BTC) approaches the $30,000 mark, altcoins have been struggling to keep up, and Cardano’s price movement has been no exception. Like other altcoins, it has only experienced a modest 12% increase since March 1st and is currently trading at $0.35.
For medium and long-term investors, the established support at $0.25 serves as the downside point of control for Cardano’s price. On the other hand, the point of control at $0.40 is likely to limit ADA’s growth or, if surpassed, may potentially drive the token toward the $1 mark.
Analyzing the daily price chart, Cardano’s ADA (ADA) is currently facing resistance from bears at the 200-day SMA ($0.36), while the bulls are taking advantage of dips and buying at the 20-day EMA ($0.34). If the ADA price falls below $0.32, it may trigger a severe plunge to $0.22.