Cardano Struggles to Hold Sway Despite Uptrend, ADA Down 6%

Despite kicking off October on a promising note, Cardano is back in red, sliding back to where it started.

A bull unzipping his bear costume on a Cardano coin.
Created by Kornelija Poderskytė from DailyCoin
  • Cardano kicked off October on a promising note with a 10% rally. 
  • It wasn’t long before Cardano was back in red, sliding by 6%. 
  • Cardano has to quickly initiate another rally or risk raising the specter of a potential investor exodus. 

Cardano recently staged a remarkable comeback, surging 10% from its last line of defense at $0.24 and reigniting a sense of optimism among ADA holders. However, with its bullish momentum showing signs of tapering, it appears it’s too soon to celebrate as ADA slides back to where it started. 

Cardano Struggles to Push Through

Cardano kicked off October on a promising note, mirroring Bitcoin’s miraculous run by closing above the $0.27 mark. The sudden surge sparked hope among many, who charted a path to the coveted $0.3 level. However, the optimism quickly faded as the asset went back to closing red, shedding most of its gains. 

Sponsored

As of Wednesday, ADA has retraced 6% from its peak of $0.27, trading at $0.252 at press time with a daily trading volume exceeding $150 million. Cardano’s inability to sustain bullish momentum has once again awakened fears among investors, whose sentiment shifted toward being predominantly bearish across the exchange, derivatives, and on-chain markets. 

Cardano price chart.
Cardano price chart. Source: TradingView.

The fleeting investor confidence was further reflected in Cardano’s long-to-short ratio flipping from positive to negative, signaling panic selling. 

ADA’s performance ultimately hinges on Bitcoin’s trajectory and the broader altcoin market. Should Bitcoin once again show strength, Cardano could find the impetus to break through bearish resistance and reclaim $0.28. However, failure to do so could lead ADA toward another yearly low.

On the Flipside

  • Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
  • Cardano has only grown by 1% this year, whereas its rivals Ethereum and Bitcoin have an average of 47% gain. 
  •  Over 91% of ADA holders remain in losses. 

Why This Matters

Cardano’s prolonged underwhelming price performances have left investors increasingly concerned about their holdings. Many are contemplating selling, raising the specter of a potential mass exodus. To bolster investor confidence, Cardano urgently needs to initiate another rally.

Sponsored

Read why an FTX Auditor is under the SEC’s magnifying glass:
FTX Auditor Draws Heat From The SEC Over Numerous Violations


Find out why Mr. Fabulous is worried about the US crypto scene:
Shark Tank’s Kevin O’Leary Sounds Alarm Over US Crypto Exodus

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.