A popular cryptocurrency trader that predicted this year’s Bitcoin ($BTC) bear market has predicted that the price of Cardano ($ADA) is set to drop in the near future as the cryptocurrency is “getting weaker and weaker” based on its chart.
According to pseudonymous cryptocurrency analyst Capo, Bitcoin’s support area around the $0.44 mark has now been tested six times and as it gets weaker it’ll likely drop to its next support level at $0.29 to $0.31.
At the time of writing, Cardano is trading at $0.43 after losing roughly 3% of its value in the last 24 hours amid a wider cryptocurrency market downturn that has seen the space enter a so-called Crypto Winter, referring to a prolonged bearish period where prices are muted.
As CryptoGlobe reported, an artificial intelligence-based price prediction model is suggesting that the price of Cardano’s native token ADA is going to surge to trade at $2.9 by September of this year, representing a significant increase from the cryptocurrency’s current price.
It’s worth noting both may be right: the cryptocurrency may lose its support in the short term and then surge later this year. Both may also be wrong, with ADA behaving unpredictably. The cryptocurrency community has, through CoinMarketCap, predicted that ADA will trade at $0.78 by the end of August, and at $0.457 at the end of the year. The community’s near-term bullishness is likely related to the network’s upcoming Vasil hard fork.
The hard fork is expected to deliver a “massive performance improvement” to the cryptocurrency’s network.
Development activity on the Cardano network, which tracks “the number of GitHub events that the project organization generated”, has surpassed that of other major cryptocurrencies, including Ethereum ($ETH) and Solana ($SOL) ahead of the hard fork.
Grayscale Investments has maintained both ADA and SOL as the top holdings in its fund offering investors exposure to smart contract blockchain networks while excluding Ethereum.
According to data from the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE), its Cardano allocation is now 30.7%, meaning each share of the fund has 4.4 ADA on it, while its Solana allocation is 26.01%, representing 0.044 SOL per share.
Featured image via Unsplash