As the cryptocurrency market crash accelerates, Cardano price continues its strong downward trend, reaching its lowest price since February 2021.
summary
As the cryptocurrency market continues to tumble, Cardano’s price has fallen to an important support level. CME will launch ADA futures next Monday. ADA price action is dependent on the performance of the broader cryptocurrency market.
Cardano (ADA) token is trading at $0.2650, down 80% from its December 2024 high. It is also down 91% from its all-time high of $3.
A potential catalyst for ADA prices will be the CME Group futures listing scheduled for February 9th of this year. This will be the primary listing available to institutional investors and individual traders.
Historically, major product launches like this usually lead to price increases. For example, tokens such as Solana (SOL) and Ripple (XRP) soared after the launch of futures.
However, in the case of Cardano, a rebound may not occur after the futures launch. First, the launch takes place during a cryptocurrency market crash. As such, industry-wide sentiment may outweigh the importance of futures listings.
Second, the launch of ADA futures is priced in by market participants, so Cardano may continue to be under pressure. Additionally, Cardano has lost support from investors over the past few years as it has fallen behind similar chains such as Solana, BNB Chain, and Ethereum.
Cardano has failed to attract major oracle networks like Chainlink. Its total value locked in the DeFi industry is less than $300 million, much lower than the industry’s billions in assets. It also has a small market share in the stablecoin industry, with only $30 million in assets.
Charles Hoskinson and his team are working to address these issues through the $70 million ADA Fund launched last year. The goal of this fund is to attract more oracles, tier 1 stablecoins, and analytical tools. Cardano is also preparing for the launch of its Midnight mainnet this month or in March.
Cardano price technical analysis
The weekly chart shows that the ADA token has been in a strong downward trend over the past few months. It fell from a high of $1.3296 in December 2024 to a low of $0.2360. This week’s low was notable as it had failed to break below that level multiple times since December 2022.
ADA price is trading below the 50-week and 100-week exponential moving averages, resulting in a bearish crossover. The relative strength index entered the oversold zone at 30.
Therefore, the most likely Cardano price prediction is neutral. On the positive side, it has always bounced back whenever it hits this support level. This means it could rebound again in the coming weeks.
On the other hand, a loss of this support could lead to further downside and reach the key level of $0.100.
