The ADA price continues to diverge from other cryptocurrency prices. The Cardano price is trading at $2.0990, which is slightly above the lowest level on 13th October. It has declined by more than 6% from the highest level during the weekend, bringing its total market capitalization to more than $70 billion. It has been left in the dust by Binance Coin, which is now the third-biggest cryptocurrency in the world.
Why is Cardano lagging?
The ADA price is lagging even as other cryptocurrencies stage a major rally. For example, the Bitcoin price is trading at more than $63,000 and is just a few points below its all-time high. Similarly, Ethereum has climbed to more than $3,800 while other coins like Fantom, Terra, Avalanche, and Cosmos have all popped.
The overall underperformance of Cardano is likely because investors are waiting for the first applications that are built on the network. This is because the network recently launched its smart contracts features.
Analysts believe that developer and user adoption of these features will be crucial to the survival of Cardano and its ecosystem. While many developers have started using it, there is a possibility that its adoption will lag because of the rising competition in the industry.
ADA price prediction
The four-hour chart shows that the Cardano price has been in a bearish trend lately. The coin remains below the descending trendline that is shown in blue. It is also forming a descending triangle pattern whose support is at $2.0683. Additionally, the ADA price is below the 25-period and 50-period moving averages.
Therefore, the price will likely break out lower as bears target the next key support level at $1.9115, which is about 10% below the current level. On the flip side, a move above the resistance at $2.1700 will invalidate this view.