Following the unexpected creation of the uptrend that moved the whole crypto market upward, the prices have begun to crash again in the past week. The crypto market has shed about 12% in about a week.
Huge Weight Loss
Cardano lost about 18% and its native token price has gone dip into the buying area. The question now is if it is good advice to buy the dip at this moment. Or will it be better for buyers to wait it out a bit to buy when there is a price increase?
CoinMarketCap reported that ADA dropped off 2.88% of its price value and is now trading at $0.4505.
Cardano is usually referred to as the “Ethereum killer.” It is an open-source decentralized application, as well as a smart contract blockchain. It was launched in the year 2017 and it was tipped to be better and bigger than Ethereum with time.
It is built on the proof-of-stake system which is a lot more power-efficient than the proof-of-work system that Ethereum is currently running on. In view of the many issues with Ethereum like its slow operation process and high gas fees, Cardano is believed to have established the benchmark for important updates while using cutting-edge technology.
Cardano has upgraded to its Alonzo protocol. The network thus became more scalable, secure, resilient, and technically ahead in 2021.
A Lot Might Depend on Market Sentiments
The crypto market dropped by as much as 12% in just one week. Bitcoin, which is the king of them all, shed off about 11% while Ethereum, on the other hand, lost 16%. It now looks like the leaders in the week before now have switched their positions and have embarked on a bearish path.
Cardano did well in that time as it rose from its low price of $0.40 and got to a peak of $0.59. It is almost equal to gaining 47%.
The crypto market made another adjustment on Monday and dropped still lower. ADA got to its support level at $0.45 but it is currently trying to move higher.
The price might begin to consolidate between $0.45 and $0.50. Then they might spring back higher and consolidate at a higher price. From then on, ADA’s trajectory will rest so much on market sentiments.
If the general crypto market shoots higher, ADA could breach the $0.50 line upward. The hype around Ethereum’s Merge has reduced and no huge price jumps are in view.