Cardano Price Prediction: ADA Bears Remain in Control, With $0.40 the Target

Key Points

• Cardano is back under pressure amid a downbeat tone in crypto markets on Monday, having failed to recover this weekend.
• ADA bears continue to eye a test of annual lows in the $0.40 area.
• Chatter about a drop to sub-$0.20 levels has once again picked up.

ADA Bears Continue to Target Annual Lows in $0.40 Area

ADA, the native token that powers the Cardano blockchain, is back under pressure on Monday after attempting to stage a comeback over the weekend. The cryptocurrency is back to trading in the mid-$0.44s per token, down over 3.5% on Monday and now down about 6% versus Sunday’s highs in the $0.47s.

Price action suggests that the bears remain in control after last week’s big drop. ADA closed the week nearly 19% lower on Sunday, its worst performance since May. The bears gained control after ADA dropped below a key support trendline that had been in play since mid-July and then when broader cryptocurrency markets took a tumble on Friday.

Sentiment in broader cryptocurrency markets has starter the week on a bad footing amid risk-off flows in the global equity space, with traders citing further concerns about 1) central bank tightening, 2) the worsening energy crisis in Europe amid the latest Russian gas halt and 3) concerns about Chinese growth, after the PBoC just lowered rates again.

These concerns, which are weighing on Cardano as well, seem unlikely to alleviate in the coming days, meaning cryptocurrency markets may well remain under pressure. Cardano bears will continue to eye a test of annual lows in the $0.40 area.

A break below that could be catastrophic for ADA as it could signal a drop all the way to test the next major areas of support under $0.20 per token.

Hoskinson Apologizes to Cardano SPOs as Ecosystem Prepares for Vasil Hard Fork

Cardano founder Charles Hoskinson apologized in a lengthy tweet last week for the way he responded to claims last week that there was a bug in Vasil hard fork version 1.35.2 that had “catastrophically broken” Cardano’s testnet. At the time, he called videos making such claims “bizarre and alarming”.

Now that I've had some time to reflect on the last 48 hours, I'd like to say a few things. First, the backbone of Cardano as a useful protocol is the SPO community. It's been a rough road for everyone over the last few years given that the infrastructure needs and experiences (1/

— Charles Hoskinson (@IOHK_Charles) August 20, 2022

In his latest apology, Hoskinson said that “the backbone of Cardano as a useful protocol is the SPO (stake pool operator) community”. He had previously instructed SPOs with a somewhat impatient tone to upgrade to Vasil hard fork version 1.35.3, saying it had been heavily tested and would likely be the final version used when the hard fork goes ahead.

Let's try this again. If you're an SPO, then please start the upgrade path. 1.35.3 is heavily tested, and it's more likely than not going to be the version for the HFC. Run through preview -> Devnet -> Pre-Production -> Mainnet: pic.twitter.com/9VDtRPKTTY

— Charles Hoskinson (@IOHK_Charles) August 17, 2022

It had been devs within the SPO community that initially pointed out the floor in Vasil hardfork 1.35.2. One of those devs, Adam Dean recently implied that things are now going “better than ever”.

IYKYK… #Cardano #Testnet #Vasil #HFC #CUE Building, together, stronger, better than ever. @IOHK_Charles @therealdisasm @amw7 @ATADA_Stakepool pic.twitter.com/SI5ZkIv28F

— Adam Dean (@adamKDean) August 20, 2022