Key Takeaways:
- ADA eyes an 80% drop due to bearish technicals.
- On-chain metrics disagree, showing heightened trading volumes.
- Cardano founder Charles Hoskinson sees the platform as bigger than the two leading cryptos.
YEREVAN (CoinChapter.com) — Cardano’s token ADA has stabilized near $0.25 in the past three days, mirroring Bitcoin’s sideways consolidation.
ADA Price’s 80% Crash Ahead?
Interestingly, the $0.25 level has been a crucial support line to Cardano since January 2023. Therefore, breaking below it brings considerable downside risks to the ADA market.
Cardano’s recent downside momentum has had it paint a “descending triangle,” a bearish continuation pattern characterized by a falling trendline resistance and a flat support line. In ADA’s case, the fiat trendline support is $0.25.
The ADA price has retested the support line multiple times since mid-August, though failing to close decisively below it. However, due to a descending triangle pattern, the price could eventually break below $0.25, thus risking a further drop equal to the maximal formation height.
That puts ADA en route to $0.05 in 2023, down 80% from current price levels and a three-year low for the Cardano coin. The altcoin’s future price action depends heavily on the crypto market climate. As of writing, the predictions are sour due to the continuous macro catalysts-led Bitcoin declines.
On-chain Activity High — Bears vs. Bulls
Meanwhile, the on-chain activity on Cardano had been rising year-to-date and plummeted in early Sep, according to on-chain tracker Santiment. The platform called ADA’s prospects “promising,” basing the predictions on the high transaction volume.
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Cardano is still seeing rising on-chain transaction volume despite its suppressed market value compared to its April local top. Utility plays an important role in any bounce, and this, combined with adequate ADA social dominance, is still promising.
However, the high transaction volumes year-to-date could mean a low incentive to hold, as the latter is in tune with the declining token price.
Moreover, the latest trading volume drop also backs the sideways consolidation in the previous three days. Bitcoin and Ethereum price actions could have a say in the battle between the Cardano bulls and bears.
ADA Could Be Bigger than Bitcoin or Ethereum — Charles Hoskinson
Meanwhile, Cardano founder Charles Hoskinson, also the co-founder of Ethereum, asserted that Cardano aims to be bigger than the two leading crypto assets.
Speaking at the opening of Rare Evo, a blockchain and crypto conference in Denver, Colorado, at the end of August, Hoskinson called Cardano the leader of the blockchain space. He also commented that Bitcoin and Ethereum have “recused themselves” as leaders due to several fundamental flaws.
He emphasized that both Bitcoin and Ethereum refused to have on-chain governance. Hoskinson also mentioned that in the case of Bitcoin, this anarchy meant that people had to rely on everything the initial founder did.
Cardano’s founder told the audience that his platform aims to change how people live their day-to-day lives and not only support transactions.
However, despite the futuristic plans, ADA’s short-term prospects remain bearish.
