Cardano price outlook: analyst says ADA faces 40% downside

Cardano (ADA/USD) is currently the ninth largest cryptocurrency by market size, with its $9.1 billion market cap putting it just behind popular meme coin Dogecoin (DOGE/USD) with a market cap of $10.7 billion.

As with the rest of the crypto market, ADA, the native token of the Cardano blockchain ecosystem, has been battered mercilessly during the crypto winter. Indeed, the digital asset has lost more than 80% of its value over the past year.

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According to data from market aggregator CoinGecko, ADA price is down more than 91% from its all-time high of $3.09 reached on 2 September 2021.

Analyst’s take on ADA price

Rekt Capital, a popular crypto trader and analyst, says the price of Cardano could see further losses towards a key support level. He told his 329.6K Twitter followers that he sees ADA’s next major buffer zone around $0.15, a price level last seen in December 2020.

Per the analyst, if the bears take control at target this area, then Cardano’s price could drop another 40%.

“Still more downside is likely to come for $ADA as there is no major support below for a while. The next major support for #ADA is at $0.15…That’s a -40% drop from current prices.”

Cardano is trading just below $0.26 as of 07:30 am ET on Friday, about 2.4% up in the past 24 hours. However, it’s down more than 13% over the weekly time frame. ADA/USD traded around $0.32 on 13 December, but has given up the gains as cryptocurrencies continued to slip amid sell-off pressure fueled by broader market uncertainty.

Despite the price crash, Cardano had a decent year. Technical upgrades to the blockchain included the Vasil hard fork and Plutus. As we recently reported, Cardano saw significant spike in network activity in the third quarter, with more across native decentralised applications (dapps) and NFTs.

Overall, the blockchain’s better scaling means it remains a top chain in the dapps ecosystem, and a shift in market conditions could well reflect in price movements in 2023.