Cardano Price Analysis: ADA Bubble Seems to be Bursting
The Cardano price has struggled in the past few weeks. Its ADA token has dropped in the past four straight days pushing it to the lowest level since August this year. It has crashed by more than 47% from its highest level this year.
Cardano price sell-off worsened on Wednesday after eToro announced that it would delist the token. It attributed this decision to the rising regulatory concerns about ADA. Tron, the cryptocurrency started by Justin Sun, will also be delisted.
The two cryptocurrencies declined because the decision caught investors off-guard. That’s because Cardano and Tron have not been previously mentioned in terms of regulations.
Therefore, the biggest concern is whether eToro knows something that other exchanges and investors don’t know. Also, there are concerns about whether more exchanges will move to delist the two.
Still, as I have written before, there are fundamental concerns about Cardano. For one, as Michael Novogratz has suggested, no one knows what Cardano does. While it launched its smart contract features, it seems like it has little traction among developers. This means that its bubble seems to be bursting.
Cardano price prediction
On the daily chart, we see that the ADA price has been in a strong downward trend in the past few weeks. The sell-off accelerated when the coin moved below the key support level at $1.8772, which was the lowest levels since September 22. It has also moved below the 25-day moving average and the 61.8% Fibonacci retracement level.
Therefore, the coin will likely continue falling as bears target the next key support at $1.4615. This view will be invalidated if the coin rises above $1.8772.