- Cardano (ALQO) is the third largest cryptocurrency in the world, with a market capitalization of nearly $2.3 billion. At the beginning of trading on May 7, Cardano was down nearly 15% from the previous week, trading at $0.0016. The market cap dropped to $1.4 billion. The price of Cardano fell from more than $0.05 to less than $0.006.
- The weekly close below $0.0270 marks the lowest daily price of the coin since February 2, 2020. The losses are also the worst since mid-February, according to data from Coinmarketcap.
- In the midst of a very tough year for the crypto market, the cryptocurrency Cardano has once again started off the new year with a bit of a bang. This time around, ADA has been on a steady decline since February, with a weekly close of 0.35% on Monday, February 12.
Flash crash to $0.35 increasingly likely as buyers seemingly abandon Cardano
- The flash crash, as the name suggests, was a short-lived but swift drop in prices of digital currencies. The price of Cardano fell from $0.862 to $0.35 in 15 minutes, after it had risen from $0.39 in the morning to as high as 0.42 on the Coinmarketcap exchange.
- The crypto currency market has come undone once again, with a dramatic sell-off on Thursday morning after Cardano (ADA) plunged to a $0.35 low which has so far not been reversed. In the short term, this looks like a classic head and shoulders pattern in a long-term bearish chart, but it is unlikely that the market will sustain a $100 loss over such a short time scale.
Summary
The biggest loser of the past seven consecutive months, the digital currency of the Cardano community, continues to be the only cryptocurrency in the top 100 whose price is down over 80% from a peak in January 2020. This week’s low closes the lowest weekly close since February 2021, which was preceded by the lowest daily close since September 2020.
CTA
- Investors should refrain from buying in the next few weeks, until the market corrects the ongoing downside trend.
- With no sign of relief in sight, the price of Cardano has been plummeting for the past seven consecutive months. The price of ADA is down more than 50% from its high in March, according to Coinmarketcap. The CoinDesk price index for ADA hit a low of 0.049 USD on Tuesday.
