Cardano price has been in a strong bearish trend in the past few months as concerns about the network remains. ADA has fallen by more than 67% this year and shed more than $50 billion in market value. At its peak, Cardano was valued at over $90 billion, making it bigger than most global companies like AMD and Deutsche Bank.
Vasil upgrade flop?
Cardano price retreated even after the developers successfully launched their Vasil Upgrade. Vasil was a major improvement in the network that brought in more functionalities and improved performance. As such, the recent performance is a sign that investors believe that it will not have a major implication on the network’s adoption.
Broadly, Cardano faces a number of challenges going on. The biggest one is that its adoption has been relatively slow in the past few months. For example, while more than 1,000 developers are actively building on Cardano, the outcome so far has been underwhelming.
For one, there are no major projects in its ecosystem that can match the popularity of the likes of Uniswap, Aave, and Compound. Its DeFi ecosystem has a total value locked (TVL) of less than $85 million.
Meanwhile, its market share in key industries like NFT and gaming is still small. For example, a quick look at NFT sales by volume among blockchains shows that it has no market share. The top projects in the sector are Ethereum, Solana, Flow, and Immutable X among others. Therefore, there are concerns about whether Cardano will be able to gain market share soon.
Cardano price prediction
The daily chart shows that the ADA price has been in a steep sell-off in the past few months. In this period, it has formed a descending triangle pattern that is shown in pink. In price action analysis, this pattern is usually a bearish sign. It has also moved below the 25-day and 50-day moving averages. At the same time, the MACD has moved below the neutral point.
Therefore, there is a likelihood that the Cardano price will soon have a bearish breakout since the triangle is nearing its confluence level. If this happens, the next key level to watch will be at $0.35, which is about 35% below the current level.