Cardano (ADA), the project founded by Ethereum’s Hoskinson, has faced challenges in 2023. The network continues to struggle with persistent issues, such as the lack of popular applications and the growing competition from other smart contract platforms, which pose risks to its future. Examining ADA Coin’s performance in 2019 may provide insights into the current price situation. Therefore, if 2019 repeats itself, what can investors expect?
One of the significant indicators of Cardano (ADA)’s decline is the lack of sufficient investor interest in recent times. As the popular altcoin faces selling pressure at critical resistance levels, there has been a noticeable absence of buying support at lower levels. Benjamin Cowen, the founder of Into The Cryptoverse, has analyzed how ADA Coin performed before Bitcoin’s most recent halving event.
Like many other cryptocurrencies, Cardano has experienced several price corrections in the past few months. According to CoinMarketCap, ADA’s price has declined by more than 14% in the last 30 days. At the time of writing, ADA had a market capitalization of over $9 billion, with a price of around $0.259.
Benjamin Cowen has highlighted a high probability of ADA entering a depression phase, as there are similarities in its price movements just two months before Bitcoin’s previous halving, when ADA reached its lowest point. The token’s price remained low throughout the second half of 2019.
Predictions for ADA Coin in 2023-2024
Although the depression period in 2019 resulted in significant price losses, we observed a rapid recovery following the BTC block reward halving in 2020. Now, history may repeat itself with the upcoming halving event next year.
If this scenario occurs again, the price recovery should commence around June 2024. Looking at the current state, the blockchain’s development activity has remained high, with the recent release of the Mithril mainnet upgrade a few weeks ago. Additionally, Input Output Global has published their weekly development report, highlighting the ongoing efforts made by developers in the past seven days.
Examining Santiment’s graph reveals significant whale activity surrounding the ADA token, and the number of daily active addresses has remained relatively high, indicating a healthy network. However, the recent price correction has led to a decrease in ADA’s MVRV Ratio.
This news is only analytical and informative and is not a recommendation for investment in any way.
