Cardano’s (ADA) price suggests that there are not enough willing buyers, which has led it to drop below important support and triggered a bearish market structure breach. The latest development comes with a short window of opportunity for a recovery; if it is not taken advantage of, it might lead to a sell-off.
As things currently stand, Cardano is trading at $0.3978, down 4.56% in the last 24 hours, and is down a further 7.94% across the previous week having reach lows last seen on the wick of May’s monthly red candle.
In his technical analysis, cryptocurrency trader Livercoin cautioned against “catching a falling knife,” pointing out that ADA’s retracement to levels last seen in May presents a possible chance for long positions if Cardano can regain lost territory.
“ADA just cleared the May lows. I think a reclaim of red zone could be an interesting long. No reason to knife catch it here, but just a setup to add to your watchlist.”
Cardano network performance after Vasil hard fork
The advantages that the Vasil hard fork is projected to bring to the network are more likely to be realized in the long term as opposed to the immediate future. For instance, staked Cardano (ADA) dropped to 8-month low despite the Vasil upgrade Finbold reported on October 6.
Specifically, Cardano’s TVL was $76.66 million, representing a 76.49% decline from its peak of $326 million on March 24, 2022. The latest values have resulted in the staking value of ADA returning to the levels last seen in January 2022.
Whatsmore, the TVL of the Cardano ecosystem continued to be withdrawn in the last 7 days; as per CardanoDaily, that number now sits at $69.91 million as of October 11.
Nevertheless, Cardano has added over 100 smart contracts in the 2 weeks since Vasil hard fork upgrade while also reaching 3.6 million wallets as it continues to add new addresses to its network.
Finally, the crypto community at CoinMarketCap remains bullish on the price of Cardano by the end of October; its member votes estimated that ADA would trade at $0.5873, over 36% more than its price at the time these predictions were collected.
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Source: https://finbold.com/cardano-dips-below-mays-lows-presenting-opportunities-for-interesting-longs/