LUCKNOW (CoinChapter.com)— Cardano (ADA) faced significant challenges in 2024, resulting in its removal from the top ten cryptocurrencies by market cap. Despite the upcoming Chang hardfork, which promises major upgrades, ADA has been unable to maintain its position, slipping to 11th place.
The decline marks a troubling period for the once-prominent crypto asset, which continues to lose ground in a competitive market.
Toncoin (TON) was crucial in Cardano’s fall from grace. TON’s rapid ascent in market capitalization pushed ADA out of the top ten, further highlighting Cardano’s struggles. As the market evolves, questions arise about whether Cardano can reclaim its former status.
ADA Price Paint Bearish Pattern
Meanwhile, the ADA USD pair has formed a bearish technical setup called the ‘descending triangle.‘
Analysts recognize the descending triangle as a bearish continuation pattern. The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support.
The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.
In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin’s price recently broke out of this descending triangle, only for bulls to push it back within the pattern.
However, if the Pepe coin price confirms the bearish setup, the ADA/USD pair could plummet by nearly 71%, reaching a target near $0.1.
A breakout below the pattern in the current market climate could be catastrophic for ADA prices, potentially resulting in significant losses for the trading pair.
Why Cardano Dropped And Its Chances of Recovery
Cardano’s drop from the top ten can be attributed to several factors, with market underperformance being the most significant. Over the past six months, ADA has lost 45% of its value, a decline exacerbated by a broader market downturn and intense competition from other cryptocurrencies.
TRX, for example, has surged in recent weeks, while ADA has failed to capitalize on the positive sentiment surrounding its upcoming Chang upgrade.
The market’s response to Cardano’s technological developments has been lukewarm. The Chang hardfork, while anticipated, has not generated the bullish momentum needed to raise the ADA USD pair’s price.
The slow rollout and adoption of smart contracts on Cardano contributed to negative market sentiment, weakening investor confidence. This, combined with faster-growing competitors, indirectly led to ADA’s decline, pushing it out of the top ten cryptocurrencies.
Moreover, investors have been cautious, possibly due to Cardano’s slow pace of development and the increasing competition from newer, more agile platforms. TRX’s rise to the top ten highlights this shift, as market participants gravitate towards assets showing stronger performance and clearer use cases.
ADA’s ability to recover depends on multiple factors. Technological advancements alone may not be enough. Cardano must also regain investor confidence, which its recent performance has shaken. The broader market conditions will play a crucial role, as will Cardano’s ability to differentiate itself from competitors.
However, the outlook remains bearish. The crypto market is unforgiving, and Cardano’s declining price trend suggests further struggles.
Without a significant shift in market sentiment or a breakthrough in adoption, ADA risks falling even further down the rankings, making recovery an increasingly challenging prospect.
