- Cardano is struggling to show strength despite receiving a push from bullish news.
- ADA continues to slip through the cracks and into the depths.
- Investors want to exit out of frustration as the Bears grow increasingly dominant.
August has shaped up to be a challenging month for Cardano as ADA struggles to show any strength. Suffering blow after blow, investors wonder if their beloved token will ever come back.
To provide insights into these developments, we bring our Bi-Weekly DailyCoin Regular on Cardano from our expert, Insha Zia.
Table of Contents
News and Events: Understanding Impacts
ADA Pumps Following Grayscale News and Dumps
After several weeks of underwhelming price action, a glimmer of hope emerged for Cardano as the Bulls snatched control from the Bears’ claws thanks to Grayscale’s landmark victory over the SEC.
While everyone was betting on ADA to crash into this year’s lows, given the prevailing bearish outlook, Cardano went against all odds to pump 8% to $0.28, inching closer to the critical $0.29 level. However, it wasn’t long until the Bears pounced back, pushing ADA back into their territory at the $0.25 mark.
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Given the Bears’ dominance this quarter, it’s clear that they aren’t ready to lose control, as they set their sights on driving ADA to $0.21.
Charles Hoskinson Makes Bold Claims
Charles Hoskinson has been quite vocal since the last DailyCoin regular, taking shots at the SEC and the crypto industry on different occasions.
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Shedding light on the US’ crypto crackdown, the founder clarified that Cardano isn’t a direct target of the SEC’s enforcement crosshairs. Instead, it has been inadvertently swept up in the regulatory crossfire aimed at US cryptocurrency exchanges. The founder further underlined that the regulator’s actions were driven by politics and had nothing to do with Securities laws.
Soon after, in another event, Hoskinson boldly predicted Cardano would surpass Bitcoin and Ethereum by transcending beyond its cryptocurrency status. He justified that the two major cryptocurrencies had recused themselves while Cardano achieved remarkable growth this year.
However, despite Hoskinson’s confidence in Cardano’s long-term prospects, the project still grapples with ongoing regulatory scrutiny and is still struggling with challenges that hinder its compatibility with other projects in the industry.
Cardano Community Drama
Despite showing remarkable progress this year on multiple fronts, Cardano still faces scrutiny, often dubbed a ‘ghost chain’ for struggling with its price action and dwindling network activity.
Since the last DailyCoin regular, the Cardano community led by founder Charles Hoskinson has clashed with crypto Twitter multiple times over its struggles with growth. The most noteworthy conflict happened with Evan Van Ness, an Ethereum influencer who drew comparisons between Cardano and Base, a newly launched Layer-2 network that clinched the title of the fastest-growing DeFi network this year.
Cardano’s Celebrates Milestone Accomplishments
While ADA continues to underwhelm investors, Cardano, on the other hand, has shown remarkable growth. The Proof-of-Stake network is emerging as a prominent player in cryptocurrency as it positions itself to compete with its more established competitors.
Recently, the network achieved several milestones, including surpassing 1.3 million stakers, adding over 250,000 new wallets, and clinching the title of the top development platform in August.
Current Outlook
At the time of writing, ADA exchanged hands at $0.258, showing no change since the last DailyCoin regular. Despite briefly pumping to $0.28 following Grayscale’s victory, Cardano struggled to maintain momentum, which later triggered increased sell orders from investors looking to exit their positions, resulting in a complete retrace of the rally.
Investors have largely shifted toward a bearish outlook for the foreseeable future as the Bears look to drive Cardano toward the yearly low at $0.21. According to IntotheBlock, exchange, derivative, and on-chain markets remained bearish at press time. The notion was further reinforced by Cardano’s long-to-short ratio flipping from positive to negative.
Given the prevailing bearish macro conditions and the Bulls’ weakness, the likelihood of Cardano reclaiming $0.3 appears dim. ADA could likely range between $0.22 and $0.26 until the end of the year, much akin to the price action preceding the SEC’s crackdown.
On the Flipside
- Cardano has only grown by 4% this year, whereas its rivals Ethereum and Bitcoin have an average of 47% gain.
- Since the last DailyCoin regular, traders lost over $500 million across crypto-tracked futures.
- IntotheBlock reports that over 92% of ADA holders remain in losses.
- Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
Why This Matters
ADA’s recent performance is shaping up a worrying trajectory for Cardano. With the Bulls nowhere to be seen, things aren’t looking good for the Proof-of-Stake chain as investors look to exit.
Find out why Charles Hoskinson would never do business with NFT projects:
Cardano’s Hoskinson Clears Air on NFT Project Affiliations
Read how Cardano’s user base grew despite chaotic market conditions:
