As the rest of the crypto coins stabilize from the general depreciation of the market prices in the various cryptocurrency markets, Cardano (ADA) has been unable to turn around. The crypto coin is on a major decline even after hopes that it was going to at least change the trend at the beginning of the Q2 of 2018.
Currently, it is at $0.220500 USD per token, which with a market cap of $5, 716919,054 USD. Looking at the general trend of the price, it is in a bearish trend which isn’t coming to an end any time soon.
There are even fears that the coin may go past the $0.2 level.
Cardano had given investors very high hopes following the sudden surge in market prices towards the end of 2017 and at the beginning of 2018, when the price went past $1.2 USD in early January. At that time there was a lot of anticipation of a major ‘burst’ in price and investors/traders had really purchased its tokens. At the moment all those who never closed their orders hoping that the market will become bullish are regretting.
What is causing Cardano (ADA) to drop?
The development team recently updated the road map of Cardano. However, this doesn’t seem to help in making the crypto coin to get strong. Instead, the coin is still in a downtrend.
One of the main contributors to the downfall of Cardano is the lack of a well-established foundation of the smart contracts used for Cardano. The IOHK development team is a bit slow in tackling this issue.
The Q1 is almost running out and the Q2 is fast approaching. Investors are hoping and praying that he value turns around. But this will need the crypto coin’s development team to put on its best, especially after what’s happening to the US markets after SEC is demanded for the registration of any platform that offers trading of digital assets with strict scrutiny of all platforms to ensure that they do so.
So what is the best action for Cardano traders?
For traders wishing to purchase Cardano (ADA), they will have to shelve that ambition at the moment. The current bearish trend is projected to continue until the end of March.
For those trading the ADA against other currencies like the USD, they can place sell orders, but with close monitoring since the crypto coin is a sleeping giant and things may turn around any time especially towards the end of March.
Looking at the Cardano (ADA) chart, the bearish trend isn’t that sharp. There is a market consolidation and the market may be preparing to break up. That is why traders with sell orders should be very watchful and most importantly use stop levels.