Cardano price gets oversold as it crashes to key support level
The Cardano price continued its strong downward trend, reaching its lowest level since October 2023, making it one of the crypto industry’s top laggards.
- Cardano price dropped to a crucial support level this week.
- The developers are working on Pentad, which aims to grow the ecosystem.
- The coin has become highly oversold, with the RSI moving to 28.
Cardano (ADA), a top layer-1 network, slipped to $0.2640, down over 80% from its December 2024 peak and 91% below its all-time high of $3 in 2021.
ADA extended its sharp decline despite several major catalysts, including this week’s CME futures launch and the upcoming Midnight mainnet debut. The futuress product made it available to American retail and institutional investors.
Midnight, its upcoming zero-knowledge sidechain, is expected to launch either later this month or in March. Data shows that its testnet continues to perform well, having handled over 185,000 blocks and 295 million slots. NIGHT, its native token, has achieved a market capitalization of over $800 million.
Cardano’s developers are working to fix the network and attract more creators. They are working on the Leios upgrade, which will make it a faster network than many popular chains.Â
At the same time, they are implementing the Pentad program, which aims to attract more oracle network, tier-1 stablecoins like USDT and USDC, and analytics tools. It has already attracted Pyth Network, a top oracle network, and Dune, a popular analytics tool.
Therefore, Cardano price is falling because of the ongoing crypto market crash, which has affected Bitcoin and most altcoins.
Cardano price prediction: technical analysis
The weekly timeframe chart shows that ADA token has continued falling in the past few months. It has slumped from a high of $1.3230 in December 2024 to the current $0.2638.
The coin has dropped below the 50-week Exponential Moving Average, a sign that bears remain in control. Also, Cardano token has settled at the key support at $0.2212, the neckline of the head-and-shoulders pattern.
ADA has become oversold, with the Relative Strength Index at 28, the oversold level. The Stochastic Oscillator has also moved below the oversold line.Â
Therefore, the coin may rebound in the coming days, potentially to the psychological level of $0.50. However, a drop below the current support level at $0.2212 will confirm more downside, potentially to $0.15.
