- Cardano price has crashed hard in the past few months.
- The sell-off continued as the fear and greed index moved to the extreme fear level.
Cardano price has not been left behind in the ongoing cryptocurrency meltdown. Its ADA token declined to a multi-month low of $0.5896, bringing its total market cap to about $22 billion. Since its peak market cap was over $90 billion, the current value implies that investors have lost almost $70 billion.
Will Cardano ever recover?
Invest in Cardano and other cryptocurrencies have gone through a major meltdown as investors battle multiple wars at once. There is a war on inflation, which has risen to a multi-decade high in most countries. In the US, it has risen to the highest point in more than 40 years.
Investors are also battling with the new normal about monetary policy. After spending the past few decade enjoying low-interest rates, investors are now looking forward to a situation where rates rise to historic highs. The Fed has already hinted that it will continue hiking interest rates for the rest of the year.
Some of these rate hikes will be 50 basis points, which is significantly higher than historical standards of boosting rates by 0.25%. Therefore, the fear and greed index has plummeted to the extreme fear zone as investors worry about the new normal.
Cardano price has also declined because of the ongoing concerns about stablecoins. These are currencies that are backed by other assets like the US dollar. Recently, Neutrino, a coin made in the Waves ecosystem declined below the peg.
And now, there are concerns about Terra USD, the third-biggest coin in the industry. It moved below $1 as it lost its peg.
Meanwhile, ADA price has collapsed as concerns about its ecosystem. According to DeFi Llama, the total value locked (TVL) in the ecosystem dropped to $172 million, which is about 23% below where it was last month.
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Cardano price prediction
The daily chart shows that the ADA price has been in a strong bearish trend in the past few months. The coin has managed to move below the key support level at $0.9798, which was the lowest point in July last year.
The coin has moved below the descending triangle pattern and the short and long-term moving averages. At the same time, the Relative Strength Index (RSI) and the Stochastic Oscillator has moved below the oversold level.
Therefore, the path of the least resistance for the Cardano price is lower. The next key support level to watch will be at $0.50.
Interested in buying Cardano in 2022?
When looking at how to buy Cardano, you have plenty of options. For this reason, we created a guide, that will cover everything you need to know about how to invest in Cardano, including how to buy Cardano, where to buy Cardano, and also how to sell the asset along with other important considerations to keep in mind such as how to secure and store your assets.
