Cardano Teleports Below $0.28 Following Market-Wide Crash

Investors were perplexed after altcoins across the market were heavily jolted out of their ranges.

A crowd of people watching as Cardano burns into flames.
Created by Kornelija Poderskytė from DailyCoin
  • An unexpected tsunami shook the crypto market as altcoins drowned across the board. 
  • Cardano dipped below $0.28, leaving investors apprehensive. 
  • The community investigates the crash’s root cause.  

The crypto industry experienced a swift blow on August 15, as altcoins registered significant losses in a single wick. Cardano, Polygon, Solana, and Ethereum were some of the many tokens that were heavily jolted out of their ranges, triggering panic within the community. 

Investors and holders now scratch their heads, wondering what could have caused the tremors. 

Where’s the Epicenter? 

While investors eagerly awaited intervention from Cardano Whales to cushion ADA’s fall, they were caught off guard by an unexpected turn of events. 

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In a sudden twist, Cardano dipped 5% from $0.28 to $0.27, wiping millions in open interest and resulting in traders losing over $2 million across long positions in 15 minutes. While significant, Cardano’s loss wasn’t as titanic as Ethereum’s $15 million liquidation in the same period. 

As per CoinGlass, the unexpected earthquake shook the market out of $120 million in liquidations across crypto-tracked futures. 

Liquidation heatmap.
Liquidation Heatmap. Source: CoinGlass.

Although the exact cause of the crash remains uncertain, community members have pointed toward the SEC’s decision to delay all Bitcoin Spot ETF applications until 2024. However, it’s worth noting the news was circulating hours before the market plunge and didn’t originate from a reliable source. 

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Some users have even suggested that the abrupt downturn of the US Stock Markets, particularly across NASDAQ and Dow Jones, could have propagated the crypto market crash. 

As investigations continue to uncover the epicenter of the market-wide earthquake, investors find themselves dumbfounded, wondering if their beloved tokens will recover. 

What Happens Next?

Before the crash, Cardano had been slowly spiraling toward its doom as the Bears drove ADA toward their territory under the $0.25 mark. However, given the market landscape at the time, it was likely that the asset would range between $0.28 and $0.3 for the rest of the year. 

Following the sudden price plunge, investors were quick to the rescue, driving ADA back into its range and retracing 50% of the drop. At press time, Cardano exchanged hands at $0.281, boasting a daily trading volume exceeding $200 million. 

Cardano price chart.
Cardano Price Chart. Source: TradingView.

While the community delves into the crash’s root cause, Cardano could stay comatose in the middle of this range before deciding where it goes next. Over the following weeks, investor sentiment and volume will ultimately shape ADA’s trajectory for the rest of the year. 

At the time of writing, investor sentiment across chain, exchange, and derivative markets remained predominantly bearish, according to data from IntoTheBlock

On the Flipside

  • The recent crypto market downturn led to a rise in the percentage of Cardano holders experiencing losses, reaching 89%.
  • The market-wide crash wiped $12.8 billion from token market capitalization

Why This Matters

Sudden market crashes are often tied to bearish news events; however, the nature of this plunge has yet to be determined, which can raise alarms among investors. 

More on Cardano: 

Cardano Trading Volume Spirals as ADA slips under $0.29

Read why Cardano Bulls have been struggling: 

Cardano Bulls Botch Support, ADA Drops 11%

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.