A popular cryptocurrency analyst has warned that the price o Cardano ($ADA) could soon crash if the smart contract platform doesn’t recover to previous levels in the near future, amid a wider bearish downturn that has affected the entire cryptocurrency market.
According to analyst Jason Pizzino, the price of $ADA may drop into the $0.30 range in the near future as the cryptocurrency’s support levels, which are areas where buyers tend to accumulate more coins at prices they see as favorable, keep failing to hold.
In a new strategy session, as reported by Daily Hodl, he does not believe ADA is going to manage to hold, nor does he see the cryptocurrency’s price going “back above $0.60 anytime soon.” Per his words, the cryptocurrency is “much, much weaker” at current levels.
According to CryptoCompare data, Cardano is at the time of writing trading at $0.36 per token, compared to around $0.45 a month ago. As reported, the crypto community is especially bullish on Cardano, with price estimates made via CoinMarketCap revealing that 11,200 users believe the cryptocurrency will trade at $$0.577 by the end of the month, up 60% from the cryptocurrency’s current price tag.
Per Pizzino, ADA’s $0.40 level is now acting as resistance against it on the daily chart, and “any sort of moves up that happens with Bitcoin ($BTC) might be overall less to the upside.” The analyst added that when BTC falls, it’s “going to be a hard hit in ADA because it’s in a far weaker position overall in the macrochart.”
The analyst estimates that ADA could be “falling into these teens” at around $0.17 per token, which would be a significant downturn for the cryptocurrency. To Pizzino, ADA’s chance to avoid such a crash would be to quickly get back above all of its previous support levels this month to retake the $0.40.
Cardano’s usage, despite the poor price performance, isn’t seemingly dropping. As reported, a prominent Cardano community resource has made it clear that the smart contract platform isn’t a ghost chain, as it noted that nearly 25% of the network’s transactions were made over the past year.
According to Cardano blockchain monitoring service Cardano Blockchain Insights, a total of 51.3 million transactions have been made on the Cardano blockchain since its inception in 2017, with around 12.5 million of those being smart contract transactions generated since the Alonzo hard fork was launched in September 2021.
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