Key Insights:
- Cardano’s price has plunged by 70% since its December 2023 peak, contributing to its underperformance in the market.
- Despite a 36% drop in TVL, Charles Hoskinson remains hopeful that upcoming projects like Midnight and RealFi will boost Cardano’s network.
- Cardano’s technical chart shows signs of a potential rebound, with a falling wedge pattern and an oversold RSI suggesting a possible price increase.
Cardano (ADA) is currently facing significant price struggles, trading at $0.4100, its lowest value in over a year. This price represents a staggering 70% drop from its peak in December last year, positioning Cardano as one of the biggest underperformers in the ongoing crypto market crash. Despite the bearish market conditions, Charles Hoskinson, Cardano’s founder, remains optimistic about the future of the network, hinting at a potential rebound driven by rising Total Value Locked (TVL) in the platform.
Cardano’s network TVL has faced a considerable decline, plummeting by 36% in just the past month to $186 million. The decline in TVL has contributed to a perception that Cardano is a “ghost chain,” with many questioning the network’s usage and relevance. Nansen’s CEO recently predicted that Cardano could fall out of the top 20 largest cryptocurrencies, citing its low adoption and lack of significant usage. Additionally, a recent glitch on the Cardano network was met with little reaction, further amplifying the perception that no one is actively using it.
Hoskinson’s Optimism: Midnight and RealFi Projects
Despite the current downturn, Hoskinson is confident that Cardano’s network will soon experience a surge in activity. In a recent video, Hoskinson highlighted the upcoming Midnight project, scheduled for launch in December. This project, he claims, will play a key role in attracting major developers, ultimately boosting Cardano’s TVL. Additionally, Hoskinson teased the development of a new RealFi project, expected to significantly accelerate the network’s growth in the coming months.
Though Cardano’s TVL remains far below its competitors, with networks like Monad achieving impressive TVL milestones, the upcoming projects provide a glimmer of hope for a future rebound. With strategic partnerships and innovative initiatives in the pipeline, Hoskinson’s optimism may become a reality if these projects successfully attract new developers and users.
Technical Analysis Shows Potential for a Price Rebound
On the technical side, ADA’s price chart reveals that Cardano has been in a consistent downtrend. The coin recently broke the crucial $0.5097 support level, signaling further bearish momentum. However, its Relative Strength Index (RSI) has dipped into the oversold territory, suggesting that a price rebound may be on the horizon. ADA is currently forming a falling wedge pattern, with both trend lines nearing convergence, signaling a potential bullish reversal if it breaks above key resistance levels.
