NOIDA (CoinChapter.com)— Max Keiser, the outspoken Bitcoin maximalist, recently took to X to bash altcoins, including Cardano (ADA), labeling them as “centralized garbage” destined to go to zero. Keiser’s harsh critique arrives as Cardano grapples with disappointing Q2 2024 results, which saw ADA price plummet.
Messari’s latest report highlights a staggering 44.3% drop in Cardano’s revenue and a 39.7% decline in ADA’s price. Moreover, the network’s eagerly awaited Chang Hard Fork, which promises to introduce on-chain governance, faced delays, further adding to the uncertainty surrounding Cardano’s future.
With Cardano’s market cap now ranking 11th, pushing the token out from the top 10 cryptos’ list, Keiser’s remarks could add to the negativity against the Cardano token. Interestingly, the Bitcoin maximalist was commenting on the recent arrest of Telegram founder Pavel Durov, speculating that founders of all altcoins could end up in prison.
Cardano Q2 Performance Lends Weight To Dead Project Analogy
Cardano’s Q2 2024 performance, as detailed in Messari’s report, underscores the ongoing bearish trend for the blockchain. The project’s performance was laden with bearish cues. If the trend continues, the label that Cardano recently earned of being a “dead project” might become a reality.
Revenue in USD fell 44.3% quarter-on-quarter (QoQ) to $0.74 million. A sharp 27.5% decrease in average daily transactions, down to 31,800, drove this decline.
Moreover, ADA’s price dropped 39.7%, ending the quarter at $0.39. The price drop led to a 39.4% reduction in Cardano’s market cap, now ranking 11th among cryptocurrencies, down from 9th.
The total value locked (TVL) on Cardano also saw a substantial 41.2% decline, settling at $219 million. This decline and a 42.5% drop in average daily DEX volume reflect waning interest and activity in the network’s DeFi ecosystem.
Additionally, the NFT sector suffered, with sales and trading volumes dropping by 57.4% and 44.2%, respectively.
Despite these challenges, some resilience appeared within the stablecoin sector.
The market caps of new stablecoins, USDM and MyUSD, saw significant increases despite the overall negative trends. USDM’s market cap surged by 2,557.6%, while MyUSD grew by 694.8% QoQ. These gains, however, offer limited relief in the face of Cardano’s broader downturn.
The community now awaits the delayed Chang Hard Fork, expected in Q3 2024. This could be the cue that helps the ADA USD pair start a bull run.
Bearish Setup Adds To Troubles
Meanwhile, another bearish cue out to trip ADA bulls is a technical setup called the ‘descending triangle.‘
Analysts view the descending triangle as a bearish continuation pattern. A descending upper trendline compresses price action into lower highs, while a flat lower trendline provides weakening support in this formation.
This pattern indicates increasing selling pressure, leading to weaker rallies that struggle to break resistance.
Traders assess the potential downside by measuring the triangle’s maximum height. Recently, Pepe coin’s price briefly broke out of this descending triangle before bulls pushed it back within the pattern.
If the Cardano token price confirms this bearish setup, the ADA/USD pair could drop over 73%, targeting a level near $0.1.
A breakout below the pattern in the current market conditions could be disastrous for ADA prices, likely resulting in significant losses for the trading pair.
