Cardano (ADA), the eighth most valuable crypto ranked by market capitalization, is experiencing its biggest single-day drop in two months as the ongoing crypto crash wipes off 11% of Cardano’s value.
Cardano (ADA) Drops to $0.4
The crypto market crash continues on Monday, September 19, with Cardano (ADA) suffering one of the biggest losses. The price of Cardano has tumbled by 11% in the last 24 hours to fall as low as $0.4344.
The 7 day price chart for Cardano (ADA). Source: CoinMarketCap
ADA’s price crash comes amidst a broader, global economic crisis. Soaring inflation has caused central banks to raise interest rates, leading to a ripple effect that has taken a huge toll on the crypto and stock markets.
Last week, the stock markets experienced their steepest weekly decline since June 17th. In the last 24 hours, the stock markets are down nearly 1%, as the U.S. Federal Reserve prepares for what could be the highest interest rate hike in 40 years.
Is It About to Get Worse for Cardano (ADA)?
Veteran trader Peter Brandt highlights that Cardano (ADA) is exhibiting a bearish continuation pattern, which mimics the pattern seen in Bitcoin (BTC) preceding BTC’s 50% crash during the 2018 crypto winter.
Brandt predict significant further decline for ADA in the coming days. If ADA drops in value by 50%, it could hit levels of $0.22, last seen more than 20 months ago. Brandt wrote on Twitter (NYSE:TWTR):
This is a fractal chart construction known as a descending triangle. If it continues in the fractal, $ADA should have one more significant decline. "Should," not "must" pic.twitter.com/b3ZL7NTdYj— Peter Brandt (@PeterLBrandt) September 14, 2022
The veteran trader’s analysis of ADA comes less than a week in advance of Cardano’s much anticipated Vasil hard fork. In relation to the upgrade, Charles Hoskinson announced that a hard fork combinator request has been submitted and successfully accepted.
On the Flipside
- Cardano (ADA) holders are looking forward to the 8-and 21-day simple moving averages (MAs) which many are looking to with hopes of forming a post-rejection that could drive the price of ADA above $0.52.
Why You Should Care
The Cardano (ADA) crash mirrors that seen in the rest of the crypto and stock markets. Despite this, supporters remain hopeful that Vasil, which is in the final stages before implementation, can turn the tide for ADA.
Recent Developments as Cardano approaches Vasil:
Eight Leading Exchanges Upgrade Their Systems Ahead Of Cardano’s Vasil Hard Fork
Hoskinson’s responds to critics about the centralization of Cardano below:
Cardano (ADA) Founder Charles Hoskinson Says He Cannot Change ADA’s Supply Or Force The Vasil Hard Fork