Cardano Price Prediction as NFT Transactions Plunges – BanklessTimes
Cardano price continued its freefall in November as concerns about contagion continued. ADA crashed to the year-to-date low of $0.2960. On Thursday, the coin was trading at $0.3158, which was about 6.7% above the lowest level this year. Its market cap has collapsed from an all-time high of $90 billion to about $11 billion.
Cardano’s ecosystem showed some worrying data in November as a somber mood engulfed the cryptocurrency industry. The situation happened after Coindesk published a report that eventually led to the collapse of FTX and Alameda Research.
Ironically, the report also led to problems at Digital Currency Group (DCG), the conglomerate that owns it. The company has hired restructuring advisors because of the vast illiquid assets it holds.
A closer look at key data in Cardano’s ecosystem shows some challenges. For one, the number of ADA holders dropped to about 2.4 million. At its peak, the network had over 6 million holders. At the time, analysts and investors believed that Cardano would be the best alternative to Ethereum.
Meanwhile, Cardano’s DeFi ecosystem continued to see outflows. According to DeFi Llama, Cardano’s total value locked (TVL) crashed to $73 million. At its peak, the network had a TVL of over $420 million.
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Minswap is the biggest DeFi app in Cardano with a TVL of over $28 million. It is followed by other DeFi apps like Meld, WingRiders, and SundaeSwap. A key challenge is whether Cardano’s DEX networks will ever gain market share since the industry is now dominated by the likes of Uniswap, GMX, and dYdX.
Cardano price also crashed as the volume of NFTs in its ecosystem retreated. Data showed that the sales of Cardano NFTs declined to $8.9 million in November from the previous month’s $23 million. It was the worst month for Cardano’s NFT since August 2021. The number of unique buyers crashed to $22,457 while sellers dropped to 992.
ADA price has been in a tight range in the past few days as a somber mood engulfed the industry. It was trading at $0.3158, which is along the 25-day and 50-day moving averages. Cardano has also formed a symmetrical triangle pattern that is shown in orange while the Relative Strength Index (RSI) has move above the neutral point.
It is also slightly below the important resistance level at $0.3310, which was the lowest point in October. Therefore, the coin will likely have a bearish breakout in December. If this happens, the key support level to watch will be at $0.25.
The only solace for Cardano is that the Fed has pointed that it will start hiking rates at a slower pace in December. Such a move will be bullish for Cardano and other cryptocurrencies.
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