Cardano Price Drop May Be Par for the Course at This Point
Price Analysis

Cardano Price Drop May Be Par for the Course at This Point

Cardano Price Drop May Be Par for the Course at This Point

The latest Cardano (ADA) price slide could signal the start of a bearish run as we head towards 2019 as investors capitalize on recent highs. Tracking the ADA price live on November 1, the USD value was up by 1.84% but recent activity has seen sellers dominate the market. Following the coin’s surge in mid-October, short-sellers appear to be offloading the assets and locking up profits as we move towards the end of the year. The higher than expected sell-off has caused the price of Cardano to drop by as much as 20% since its October 15 high, leading some to question whether now is the time to buy ADA.

It’s Crunch Time for Cardano

News of the decline comes at a time when the project is entering a make-or-break period. In October, founder Charlie Hoskinson announced the end of the Cardano Foundation. When the token was first launched, a triumvirate of business entities were set-up to guide its development: The Cardano Foundation, IOHK (Internet Online Hong Kong) and Emurgo. The Foundation was in charge of community engagement. However, despite its best efforts, the Foundation’s efforts fell short. To ensure any deadwood is cut away quickly, Hoskinson announced the end of the community outreach arm, leaving IOHK and Emurgo to pick up the slack.

Losing a core part of its business could be one reason for the latest ADA price drop. However, it’s not been all doom and gloom for the project. Cardano’s Rust Project went live in early October and should already be giving developers a more secure way to write code on the blockchain. What’s more, with Cardano bidding to replace Ethereum’s (ETH) smart contracts with a more efficient and secure protocol of its own, there is clearly plenty of potential in the project. However, the Cardano price chart doesn’t seem to be reflecting this. This would suggest one of two things: either investors are losing confidence in Cardano’s potential or the shorts are driving down the current ADA price in dollars.

ADA Price Can and Should Surge Again

ada price chart
The ADA price chart losing ground over the last month.

Mid-September was the perfect time for investors to buy on a dip as the Cardano price chart dipped to $0.63. The buzz surrounding Rust eventually contributed to a spike that took the token’s value towards the $0.90. For short-sellers, an almost $0.30 profit was enough to prompt a quick exit from the market and, in turn, cause the latest bearish run. For long-term investors, this should offer some comfort as we look towards 2019. Indeed, ADA has been on a rollercoaster ride for much of 2018, so it’s almost become par for the course at this point. The question now is whether those in it for the long-haul can continue to stomach this crypto’s ups and downs.

*Information in this article should not be taken as investment advice.  

Leave a reply

0 Comments

There are no comments on this post.

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.