ADA Falls to Fresh 2023 Low as Cardano Sentiment Wanes
Altcoins are getting hit hard at the moment as the crypto winter lengthens, and Cardano (ADA) appears to be suffering more than its digital brethren. According to analysts, ADA prices have slumped to their lowest levels this year and could go much further.
Cardano (ADA) prices have dropped below $0.25 for the first time since late December, fuelling fears of further losses.
Cardano Crash Imminent?
The short-term outlook for Cardano holders is not pretty. ADA tanked to $0.245 in the early hours of trading in Asia on Monday morning.
The last time the asset fell below $0.25 was at the end of December and very early January. This followed the fallout of the FTX collapse, which saw the broader crypto market tank to a new cycle low.
However, the following month, ADA prices surged to $0.40. That doesn’t look very likely this time around as the bears strengthen their grip on crypto markets.
On September 11, ITC CEO Benjamin Cowen said that ADA would enter a “depression phase” if it fell below $0.24.
“The depression phase will likely last until QE returns, probably sometime in 2024.”
The last time Cardano’s ADA was this depressed was during the bear market in late 2020. Back then, the token wallowed around $0.16 to $0.18 for a couple of months before climbing above $0.30.
Moreover, ADA is currently languishing 92% down from its September 2021 all-time high of $3.09.
Comparatively, Ethereum (which ADA advocates claims Cardano is superior to) is 67% down from its peak price.
Even Binance’s native token, BNB, is faring better despite being targeted by regulators and politicians across the planet.
Other analysts have eyed a big move down for ADA. On September 10, “Crypto Ryan” predicted a slump to $0.13, which he said was “set in stone.”
Keep on Building
Bear markets are for building, and Cardano developers IOHK continue to do so despite the depressing price action.
Last week, the company published its latest development highlights. “The Cardano ecosystem is constantly growing,” it said, adding, “Two new projects launched in August and twelve new projects are being built.”
Moreover, the number of token policies increased by 850, and the number of native tokens minted on Cardano increased by 140,000, it added. Additionally, the total number of transactions increased by 1.6 million in August, according to IOHK.
However, the ecosystem total value locked is just $177 million, making Cardano the 16th largest chain, according to DeFiLlama. This ranks it below THORChain, Kava, Cronos, and the recently launched Coinbase Base for TVL stats.
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