- Cardano price has been in a steep downward trend in the past few months.
- To a large extent, Cardano has not lived to its hype.
Cardano price had a terrible September as it crashed by about 10%. Ada underperformed other large-cap cryptocurrencies like Bitcoin, Ethereum, and Ripple. This means that Cardano has crashed by more than 70% this year, which is also worse than the performance of all cryptocurrencies. Data showed that the total market cap of all cryptocurrencies crashed by about 60%.
Why is Cardano struggling?
Cardano price continued its downward trend in September despite the important event that happened in the month. Developers at Input-Output, the company operated by Charles Hoskinson, launched the Vasil upgrade, which was intended to make it much faster and scalable.
Vasil upgrade was the most important event in Cardano’s ecosystem since the developers unveiled Alonzo hard fork in 2021. Alonzo introduced smart contract capabilities that made it possible for developers to build applications in industries like decentralized finance (DeFi), non-fungible tokens, the metaverse, and games among other areas.
At its peak in 2021, ADA was one of the most valuable cryptocurrencies in the world with a market cap of over $90 billion. This made it substantially bigger than some of the biggest companies in the world at the time.
This growth was due to three main reasons. First, Cardano was started by Charles Hoskinson, who was viewed with credibility since he was a co-founder of Ethereum. Gavin Wood, the other Ethereum co-founder, also created a successful platform known as Polkadot.
Second, Cardano price soared because of the overall hype that made people believe that it could be the best alternative to Ethereum. For one, it was built from the ground up using a proof-of-stake technology, which is usually cleaner than proof-of-work.
Third, ADA price rose because of the fear of missing out (FOMO) that existed at the time. However, to a large extent, Cardano has not lived to its hype. A year after introducing its smart contract technology, it has no major market share in all decentralized industries.
Cardano price prediction
The four-hour chart shows that the ADA price has been in a strong bearish trend in the past few months. Most recently, the coin has formed a descending triangle pattern whose lower side is at $0.4238. The coin’s price has crashed below the 25-day and 50-day moving averages.
Therefore, at this stage, Cardano price will likely continue falling as sellers target the next key support level at $0.400, which was the lowest level this year.
