The Cardano blockchain’s native token ADA slumped to $0.26 on Monday erasing nearly 15% of its price since last week. ADA remained on a slippery slope ever since it lost its support line of $0.44 in October 2022. The token’s value is experiencing a considerable drop and is unable to hold on to its resistance levels of $0.28 this week. If the crypto fails to rise above $0.28 and remains on the back foot, its next leg down could be $0.24.
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Cardano: Why Is ADA Falling?
ADA plummeted double digits on Friday falling from $0.31 to $0.26 erasing 12.33% of its price in a single day. The pullback in price could continue this week as ADA’s price remains unsettled making investors pull out their holdings.
Cardano’s native token has not been recovering in price during each fall after the FTX and Alameda fallout. The development is making investors skeptical to take an entry position into ADA due to fear of further slumps.
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In addition, the fall saw ADA’s trading volume fall 45% during the weekend indicating that investors are staying away from the token. Data from Investing.com also suggested that ADA experienced large sell-offs and profit bookings last week that led to its price nosedive in the indices.
Input Output HK (IOHK), published a report on Friday highlighting that projects on the Cardano blockchain have remained stagnant. IOHK states that projects being built on the Cardano network totaled 1,151 and remained unchanged from the previous week.
Also, the projects on the Cardano network have not seen a significant uptick after the Vasil Hard Fork launch in September.
The developments suggest that ADA is now under bearish indicators that could push its price down further. It is advised to remain cautious at the moment before taking an entry position in Cardano’s native token.
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At press time, Cardano was trading at $0.26 and is down 1.3% in the 24 hours day trade. It is also down 91.4% from its all-time high of $3.09, which it reached in September 2021.