Cardano, often known as ADA, has struggled to reach $1 in value by 2024 as a result of the difficult cryptocurrency market conditions. People have recently been less positive about ADA, and cryptocurrencies have been under greater negative pressure.
ADA hasn’t performed well despite being a strong coin. When compared to the year before, its price fell by half, and in 2023, it was only worth $0.5. Today we’ll examine the reasons behind Cardano’s price volatility and debate the likelihood that it will surpass $1 by 2024.
Analyzing Cardano’s Bearish Outlook and Future Prospects
Analysing Cardano’s current bearish perspective and prospects is essential for comprehending our price estimate. Cardano’s recent performance is notable for its consistency around the support level of $0.25.
When tested, this support level has proven to be resilient, frequently causing price rebounds. The vulnerable thresholds at $0.22 and $0.2 may prevent ADA from moving downward if this support fails to hold.
Technically speaking, Cardano’s circumstance seems difficult. Negative momentum is indicated by the 20-day Exponential Moving Average (EMA), which has been heading down.
This pessimistic perspective is supported by the Moving Average Convergence Divergence (MACD) indicator. At 23.93, the Average Directional Index (ADX) value indicates a strong downward trend on the daily chart.
Despite sporadic price increases, ADA has had trouble building long-term bullish momentum. This suggests that market trust needs to be restored. ADA is currently trading at $0.2564, down 0.29% over the past 24 hours and 3.67% over the past 7 days.
The Cardano platform component Project Catalyst encourages community-driven innovation by letting users suggest and select projects for funding. Even then, Cardano’s gloomy market view has not been sufficiently changed by the prospect of decentralised development.
Cardano’s Recent Performance
Recent years have not been kind to Cardano’s price growth. By exceeding $1 in April 2022, ADA marked a momentous milestone. As the cryptocurrency has failed to hold onto its value, this feat has now faded into obscurity. Cardano has been hovering around the $0.5 level since the start of 2023, struggling to regain its former highs.
The value of ADA has drastically decreased as a result of many investors losing faith in the current gloomy trend. Because there isn’t much bullish momentum at the moment, the market capitalization of ADA varies between $8 billion and $9 billion, reflecting the general market attitude.
The SEC’s Impact on Cardano
The U.S. Securities and Exchange Commission (SEC) is a significant component that affects the price trend of Cardano. The SEC filed lawsuits against Coinbase and Binance, classifying Cardano (ADA) in both instances as a security. For the ADA, these regulatory restrictions have had a big impact.
The founders of Cardano and Ripple, Charles Hoskinson and David Schwartz, disagree with the SEC’s classification of ADA as a security. Hoskinson emphasized that ADA’s direct sales were not part of the initial coin offering (ICO) held in Japan.
Due to the SEC’s designation of ADA as a security, ADA trading has been delisted from many exchanges and suspended in many countries, including the US. This regulatory ambiguity has made things more difficult for Cardano and perhaps made it harder for it to pick up steam.
The Path Ahead for Cardano
In closing, it seems like Cardano will have a difficult time breaking the $1 barrier by 2024. Technical indications and market sentiment both point to a persistent downward trend, which presents a difficult situation for ADA bulls. The general trajectory suggests that Cardano may not breach the $1 resistance level anytime soon, despite potential tiny price rallies.
The SEC’s designation of Cardano as a security presents regulatory difficulties, which further complicate Cardano’s future directions. It is unclear how Cardano and its community will overcome these legal obstacles and seek to win back market trust.
Investors and fans keeping an eye on Cardano should actively monitor key support levels, technical indications, and any developments regarding regulatory problems.
Cardano’s struggle to surpass the $1 threshold will probably be an examination of its tenacity and capacity to change with the quickly developing cryptocurrency market.