On October 13, Cardano (ADA) sunk as low as $0.3571 — a level not seen since February 2021.
Since the Vasil hard fork on Sept. 22, ADA has been caught in a downtrend, with Oct. 10, seeing an acceleration of selling.
The Relative Strength Index (RSI), a measure of market momentum, has plunged from 46, at the time of Vasil, to a current reading of 23 — deep within oversold territory.
Since May, the $0.39 zone has proved strong support and a break beneath that level suggests further downside is coming.
The next levels of support lie at the $0.28 zone and then $0.17. A move to the lower bound would see a 95% correction from ADA’s all-time high of $3.10, achieved on Aug. 30, 2021.
The Cardano community remains defiant
In response to new lows and the possibility of further drawdowns, the Cardano community, as a whole, voiced continued support for the project.
A Reddit poster on the matter said he believes Cardano can “survive this bear.” But tempered the statement with, “there are no guarantees.”
The top comment expressed detachment, adding that he has become accustomed to bear market price action and expects a continuation of that trend.
“I think I just developed a new lower low for caring about prices , especially ADA. It’s been like this for a while and the bear market is here to stay.
Might as well just chill.”
Many other commenters voiced similar attitudes, with one posting, “not caring for price is the way to go.” Another said, “Bear market and chill? Sounds good to me.”
Over the past four weeks, the altcoin market cap has been grinding along the $509 billion zone. This week sees a dip below this zone. Further sell-offs will find the next level of support at the $440 billion level.
Will utility prevail?
In February, crypto markets dived in response to the outbreak of war in Eastern Europe. At the time, ADA was trading at around $1.30.
Input Output CEO Charles Hoskinson called on concerned investors to zoom out and look at the bigger picture.
He remarked that he finds it odd crypto appeared to move in lockstep with stocks. Nonetheless, the Cardano founder said it is important not to get caught up in day-to-day price fluctuations.
In an attempt to calm frayed nerves, Hoskinson pointed out that utility will be the driver of long-term success.
“if there’s real use and utility and a real purpose in five years, ten years, fifteen years, things are going to look better.”
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