Some analysts believe Cardano (ADA) is entering a “depression phase”, driving some bulls to accumulate.
ADA, the native token of the Cardano network, has slumped to a yearly low, touching $0.24 for the first time since December 2022.
While last year’s low was in line with broader bear market conditions, today’s price drop is a degree more isolated.
ADA is performing worse than other major altcoins: Over the past week, ETH is down -2.6%; BNB by -2.6%; and DOGE by 3.8%. ADA however is down 5.8%, in line with XRP.
Benjamin Cowen, CEO of ITC Crypto, shared his opinion X, warning that ADA is now entering a “depression phase”.
“This is just what happens when liquidity is aggressively taken away,” he said, adding on a more optimistic note that “liquidity will return one day, and so too will the altcoin market.”
CoinGecko data shows that ADA is currently down -92.11% from its all-time high of $3.02 in September 2021, which is roughly on par with other altcoins, such as SOL and XRP.
Many remain bullish on ADA, despite the price slump
Cardano was founded by Ethereum co-founder Charles Hoskinson. It’s the only peer-reviewed blockchain, and despite the price struggling, the ecosystem is thriving.
The total number of transactions on the network increased by 1.6 million in August, and as of August 25, 2023, there were 138 projects launched on Cardano, with 1,277 building.
Read more: Cardano Explained | A beginner’s guide
Cardano has a distinct 5-stage roadmap, which is now nearing the end of development. Throughout 2024, the network will execute the Voltaire leg of its roadmap, which will focus on governance. Hoskinson has expressed on several occasions that robust governance is the “single most important feature” of blockchain technology, and that many projects fail due to weak governance structures.
In line with Cowen’s prediction of an ADA depression phase, X user Crypto Ryan predicts the price of ADA will drop down to $0.13 soon, surmising that the downward movement is “set in stone”.
He believes that ADA is now preparing for a +500% move, which would take the crypto up to around $0.90.
Another crypto investor, Kara Szabo, announced that she purchased $20,000 of ADA a few days ago, stating it’s simply “too good of a price to pass up on”, and that it’s “less risky” than SOL.
“I’m so bullish on ada after my price prediction research that I just bought another $20k worth of Cardano,” she wrote, adding that she will “definitely be buying more”.
A week before her ADA purchase, Szabo hinted at her broader market perspective, writing, “We are buying crypto now, not selling. It’s time to accumulate deals on strong coins that are in the red.”
Data from CoinMarketCap echoes this sentiment: ADA’s 24h trading volume is up by +27% today, coming in at $124,991,645.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.