Key Cardano Takeaways:
- Cardano was the ‘biggest loser’ among top 10 cryptos in the previous week.
- The digital asset price eyed a further 35% decline based on the Descending Channel formation.
- Its founder Charles Hoskinson was optimistic on the crypto future, citing growing adoption.
YEREVAN (CoinChapter.com) — Cardano (ADA), ranked #8th crypto with a market cap of $2.4 billion, lost 15% of its value in the previous 24 hours.
Moreover, the Ethereum rival’s weekly losses stood near 28%, the largest among the top 10 cryptos. As a result, it traded at a month-to-date low of $0.79 on Feb. 24, as the sell-off pressure built further amid the raging geopolitical crisis in Ukraine.
Also read: Cardano sees increased transactions as ADA breaks out of downtrend.
However, after losing the long-term support at $1.00 on Feb. 17, the charts hinted at a further 35% decline, based on a technical setup dubbed the Descending Channel. In detail, ADA has been trading within the formation since Aug. 2021. It entails two parallel trendlines that enclose the price action and drive it down, preventing sharp breaks.
The Channel is neither a continuation nor a reversal pattern, as it doesn’t predict a future bias. However, the setup is instrumental in determining short-term price fluctuations. As of Thursday, ADA was headed for a support retest at approximately $0.45, i.e., 35% lower than the current value.
Also read: BTC struggles below 38K, as gold rally amid Ukraine tension jeopardizes Bitcoin's safe-haven status.
Furthermore, a cluster of bearish macroeconomic factors, such as the growing inflation, the Russia/Ukraine conflict, and the increasing price of gold, could hinder crypto recovery attempts. Thus, by extension, hit Cardano.
However, the company’s chief executive seems hopeful amid the market downturn.
Charles Hoskinson calls to focus on the bigger picture
The Cardano founder asserted that times of “panic and fear” are catalysts for change during his latest AMA on Feb. 22. He added that Bitcoin’s price decline in congruence with the stock market was confusing, but it could translate to growing adoption and a shift of focus towards digital assets and their potential.
Moreover, Mr. Hoskinson asserted that the traders shouldn’t give in to the daily chart-panic and “zoom-out” to see the bigger picture.
That’s why you have to zoom out and say, why are we here and what are we doing? And realize if there’s real use and utility and a real purpose in five years, ten years, fifteen years, things are going to look better.
said the CEO.
Additionally, Dan Gambardello, the founder of Crypto Capital Venture, called Cardano “the biggest spelling giant in crypto,” citing the Network’s capabilities on a global scale.
Also read: Daedalus 4.8.0 launched on Cardano, while ADA stagnates.
However, the traders might not agree, as on-chain metrics collected by analytical platform Santiment show the highest shorting rate in a month.
Furthermore, the platform reported passivity among Cardano whales, accounts that hold between 100,000 and 1 million ADA. Their holdings dropped from 37.0% to 17.7% of the supply in three months.
Also read: Bitcoin will not recover anytime soon, warns analyst as BTC sinks below $40K.
All the factors mentioned above sing a bearish tune for Cardano, as the crypto market halved its capitalization in three months. Cardano’s technical indicators point in the same direction, but the CEO was still hopeful and called on his followers to focus on the bigger picture rather than the daily losses.
