The Cardano price has been left in the dust in the past few weeks. The ADA token is trading at $2, which is about 36% below its all-time high. This drop has brought its total market capitalization to more than $66 billion, making it the 5th biggest cryptocurrency in the world.
ADA has struggled
At its peak, it had a market cap of more than $90 billion and it was the third biggest cryptocurrency in the world. In contrast, Bitcoin has recently surged to an all-time high of more than $66,000. Ethereum is trading at $4,320, which is slightly lower than its all-time high. Other altcoins like LUNA and Solana have also surged to their all-time highs.
It is unclear why Cardano has not participated in the recent strong rally. In my view, I believe the reason is that Cardano is significantly behind other blockchain platforms like Ethereum, Solana, and Binance Smart Chain (BSc).
As you recall, Cardano’s developers launched a highly successful Alonzo update, which was part of its Goguen era phase. The goal of this update was to introduce the smart contract technology that enables developers build decentralized applications (DAPPs).
While the launch was successful, the biggest challenge is whether developers will shift to its network. Besides, it seems like many developers have already made their decision on their preferred platforms.
For example, while Ethereum is known for being buggy, it still accounts for more than 80% of all decentralized applications and organizations. At the same time, many developers are shifting to other popular applications like Algorand, Avalanche, and Fantom.
As such, the Cardano price has struggled because investors are worried about the adoption rate. Another reason is probably that investors are just focused on other platforms that have made headlines recently.
Cardano price prediction
Turning to the daily chart, we see that the Cardano price has struggled substantially in the past few weeks. Along the way, the ADA price formed what looks like a bearish pennant pattern that is shown in red. In price action analysis, a bearish pennant pattern is usually a bearish sign.
What is notable is that the coin has moved below the lower side of the pennant pattern. It also seems to be forming a break and retest pattern. Therefore, I am still bearish the Cardano price, with my target being at $1.50, which is about 25% lower than the current level.
