Cardano founder, Charles Hoskinson, believes we are in a crypto bear market. How low could the ADA price fall?
Despite Cardano's good fundamentals, the ADA price has fallen to a new yearly low. Charles Hoskinson expects further price declines.
There was a bloodbath in the crypto market over the weekend. Most cryptocurrency prices saw double-digit declines, while bitcoin fell from $36,000 to $33,000. Cardano was also affected by the current sell-off. The Cardano price hit a new yearly low over the weekend – despite the coin’s relatively good fundamentals.
The ADA price ($0.68) is currently at the February 2021 level and around 75% below the all-time high of around $3.
Cardano Price Chart Source: Coinmarketcap
Cardano Founder: Crypto is in a bear market
As it stands, Charles Hoskinson seems to think that the ADA price could fall further - at least in the short and medium term.
Cardano founder Charles Hoskinson tweeted on May 9, 2022, that we are in a crypto bear market after developer Matt Winfield complained about the falling ADA price. Matt Winfield, in turn, responded to Hoskinson's tweet, in which the ADA founder praised the fundamentals of the blockchain.
“Yes, that's called a bear market. That's what happens. Nothing changes that. No announcement makes a difference. Cardano could cure cancer, give you a 10-inch dick, give you a personal poker robot that even drives grandma to church on the weekends, and we'd still be falling."
And the price keeps dropping
— Matt Winfield (@mwinfie) May 9, 2022
In fact, large price declines have always been part of crypto history. However, the price declines did not change the fundamental properties of the coin. For example, the Bitcoin price fell by around 86% after the bull run of 2017/2018.
The Cardano price fell by around 90% after this bull run. However, after the ADA price had reached the then low (around $0.03), the ADA price then rose massively. Currently, the ADA price is still more than 30 times higher than about 2 years ago.
How far could the ADA price fall?
The ADA price could actually fall to around 40 cents, as our crypto trader wrote in the Cardano analysis last week. The ADA price lost the important support level at $0.75 over the weekend and has not yet regained it.
“Currently, the Cardano price is again at the important support at around $0.75 and should this be breached in a bearish manner, Cardano will only find support at the 200-week EMA at around $0.54 before it is threatened with a violent fall. After that, the ADA course only finds significant support again at around $0.39.”
Should the ADA price actually reach our last price target, then the ADA price would be 88% away from the last all-time high ($3.10). In this case, we would have a similar price decline as in 2018.
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