Cardano price continued its relentless sell-off as investors remained concerned about the fall of FTX. ADA slipped to a multi-year low of $0.311, bringing the year-to-date crash to over 74%. With Cardano’s market cap being at $12 billion, it means that investors have lost over $78 billion.
FTX contagion risks continue
Cryptocurrencies have a close correlation with each other. This explains why most coins have crashed by more than 50% this year. The most recent catalyst for the ADA price crash was the collapse of FTX, one of the biggest players in the industry.
On Wednesday, Binance said that it had identified serious issues that made it impossible to acquire the company. For example, it worried about compliance issues considering that the company has about 400 staff worldwide. Binance has over 7,000 workers. Further, the company found gaps in FTX’s financial reporting and worried about an SEC investigation.
Therefore, ADA price collapsed as investors worried about contagion in the sector. With FTX down, crypto holders are concerned about the next exchanges to fall. Also, the biggest risk is that many crypto investors will completely leave the industry.
Amidst all these, Cardano price will likely not react to the upcoming American inflation data. These numbers are expected to show that consumer prices remained at an elevated level in October. This could push the Federal Reserve to continue hiking interest rates aggressively in the next few months. While these numbers are important for cryptocurrencies, they will not have an impact on the coin.
Cardano price prediction
The daily chart shows that the ADA price has been in a strong bearish trend in the past few months. This sell-off gained steam on Wednesday as FTX suspended withdrawals and Binance walked away. It has moved below the important support at $0.3900, the lowest point in May this year. It also declined below $0.3324, the lowest point on October 21st. The MACD has moved slightly below the neutral level.
Therefore, Cardano price will likely continue falling as sellers target the next key support at $0.300. A move above the important resistance at $0.3907 will invalidate the short-term bearish view.