Cardano’s Native Token ADA Continues to Decline Despite Bullish Outlook
Cardano’s native token ADA has been receiving optimistic predictions from analysts, although its price has been steadily falling and has now dropped below crucial support levels.
Crypto Analyst Hashoshi Shares Bullish Views on Cardano
In a recent interview by Altcoin Daily, crypto analyst Hashoshi expressed his bullish views on the Cardano network. Hashoshi praised the design decisions made by the network, emphasizing that they have been some of the best in the industry. He also commended the rapid development of protocols on the blockchain.
According to Hashoshi, Cardano is in a favorable position to experience a resurgence if the conditions are right. He stated, “Cardano’s done things almost completely different from the start. They’re in a good position right now, despite what people might believe, to make a resurgence if the conditions are correct.”
Regarding the price of ADA, Hashoshi believes that with the return of liquidity to the crypto market, the digital asset could surpass its previous all-time high of $3.10. He stated, “The community is still strong… and I think then you see them outstrip that previous all-time high.”
Hashoshi is not the only analyst who is optimistic about ADA’s future price. Analyst Kara Szabo predicts that ADA could reach $5. Szabo even bought $20,000 worth of ADA in September, emphasizing her confidence in the altcoin‘s bullish performance.
Szabo stated, “My conservative price estimate for the next bull run is $5. I know some people will think this is low, but this is a 20x from the current price!! For a large market cap alt, this very well may be one of the best plays in crypto at the current price point.”
Here is my in-depth #Cardano $ada price prediction for the upcoming bull market. This very well may be the best performing large market cap that investors are sleeping on:
✅ Ada has a max supply of 45,000,000,000 tokens with approximately 35,045,020,830 of those tokens in… pic.twitter.com/k4Hs89q1lG
— Kara Szabo (@kararesurrect) September 9, 2023
Cardaon's token plunges to $0.24 | Source: ADAUSD on Tradingview.com
Reasons Behind ADA’s Price Decline
Despite the positive sentiment surrounding ADA, its price has continued to struggle in the market. One significant factor contributing to the decline is the unstaking of a substantial amount of ADA from smart contracts, causing the total staked ADA to decrease.
According to DeFi tracker DeFiLlama, the total tokens staked on the Cardano network dropped from over 777 million on September 2 to 733 million on September 11. This means that more than 43 million ADA were unstaked and potentially sold on the open market by those holders.
Staked tokens nosedive in September | Source: DeFiLlama
The dumping of such a large amount of ADA into the market during a period of low liquidity could further push the altcoin’s price down, especially if more ADA is unstaked and sold.
However, despite the short-term challenges, ADA’s long-term outlook remains positive due to the ongoing developments on the Cardano network. As more developers join the network, investors are expected to follow suit.
Currently, ADA is struggling at $0.24, experiencing a 2.33% decrease in the last day and a 5.10% decrease in the last week.
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