Cardano is struggling despite market uptrend: 3 key reasons behind the slump

Published on by Cryptoslate | Published on

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Despite an uptrend in the crypto market and major technical breakthroughs, Cardano is failing to recover.

Down by 97 percent from its record high, the price of ADA is struggling more than any other top cryptocurrency.

XRP and Stellar, which had poor performing years in 2018 and 2019, have outperformed Cardano in terms of price movements from record highs.

With the release of the Shelley testnet, the technology of Cardano has started to see light.

Cardano is known to have a supportive and active community of users and developers - it has a high level of GitHub commits, which indicates that the network sees lots of developer activity on a regular basis.

The price of ADA has not been affected by improvements in Cardano's technology and the network's roadmap, possibly due to the lack of commercial projects and applications using ADA. Cardano could have better technology than Ethereum and other leading blockchain networks, but if commercial projects and decentralized applications on top of the network fail to gain traction, it is unlikely to directly affect ADA. It is the work of the Cardano Foundation to ensure commercial projects utilizing ADA see adequate growth and adoption.

The price of ADA rose to as high as $1.25 in January 2018, when the price of Bitcoin was hovering at around $20,000.

Within four months, from January to April 2018, the price of ADA fell by nearly 90 percent and it has failed to recover since.

The magnitude of the rally of ADA and the way in which it fell to levels unseen since the month of launch left no clear technical resistance or support levels.

As of now, there are no clear resistance levels for ADA except in a significantly higher area, which makes it harder for the price of ADA to rebound.