Cardano price continued its strong downward trend, reaching its lowest level since February 2021, as the crypto market crash accelerated.
Summary
- Cardano price dropped to a crucial support level as the crypto market crash continued.
- CME will launch its ADA futures on Monday next week.
- ADA’s price action will depend on the performance of the broad crypto market.
Cardano (ADA) token was trading at $0.2650, down by 80% from its highest point in December 2024. It has also retreated by 91% from its all-time high of $3.
A potential catalyst for ADA’s price will be the upcoming CME Group futures listing on February 9 this year. This is a major listing that will make it available to institutional and retail traders.
Historically, such important launches normally lead to higher prices. For example, tokens such as Solana (SOL) and Ripple (XRP) jumped after their futures launched.
However, in Cardano’s case, there is a possibility that the rebound will not happen after the futures launch. First, the launch will occur during a crypto market crash. As such, the broader sentiment in the industry may outweigh the importance of the futures listing.
Second, Cardano may remain under pressure since the ADA futures launch has been priced in by market participants. Additionally, Cardano has lost favor with investors in the past few years because it has been left behind by similar chains like Solana, BNB Chain, and Ethereum.
Cardano has failed to attract major oracle networks like Chainlink. Its total value locked in the DeFi industry is less than $300 million, which is much lower than the billions in assets in the industry. Also, it has a small market share in the stablecoin industry, with just $30 million in assets.
Charles Hoskinson and the team are working to address these issues through a 70 million ADA fund launched last year. The fund’s goal is to attract more oracles, tier-1 stablecoins, and analytics tools. Also, Cardano is preparing for the Midnight mainnet launch either this month or in March.
Cardano price technical analysis
The weekly chart shows that the ADA token has been in a strong downtrend in the past few months. It retreated from a high of $1.3296 in December 2024 to a low of $0.2360. Its lowest level this week was notable as it has failed to move below it several times since December 2022.
ADA price has moved below the 50-week and 100-week Exponential Moving Averages, which have made a bearish crossover. The Relative Strength Index has moved into the oversold zone at 30.
Therefore, the most likely Cardano price prediction is neutral. On the positive side, it has always bounced back whenever it reached this support level. This means that it may rebound again in the coming weeks.
On the other hand, losing this support will lead to more downside, potentially to the key level at $0.100.
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