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
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.