The value of ADA has dropped by 86% since August 2021, a sign that the crypto winter has affected it deeply. The development activity on Cardano has decreased while the price continues a long bearish trend.
Less than a week before the fifth and most relevant upgrade of the Cardano blockchain, the value of ADA continues to drop. Although the hard fork event promises higher scalability and lower transaction fees, that seems insufficient to sustain the price.
ADA has dropped freely for over three months, achieving modest recoveries, and investors seem to have lost positive expectations. The crypto winter deeply affected the confidence in ADA, but the market capitalization has only dropped by 4% over the last week.
ADA Might Suffer Further Decline before the Vasil Upgrade
ADA has lost 86% of its value since August 2021, a sign that the crypto winter has deeply affected it. According to trader and analyst Peter Brand, the pattern reflected by ADA will continue to move downward. Its underperformance and descending triangles signal another decline, as Brand described on Twitter.
However, the graph shows acceptance and a possibility that ADA will form a third ascending triangle. The first cases occurred in early September, and it is possible to see small gains before its long red candlesticks.
Optimistic expectations about the Vasil hard fork seem insufficient to lift the bearish investor sentiment on ADA. In its current trend, it is possible to see volatility by looking closely at the Bollinger Bands. That could change if ADA continues falling until some revealing event occurs after the upgrade is complete on September 22nd.
On-Chain Metrics about the Price of ADA
The Santiment graph has shown that the thirty-day market value to realized value (MVRV) ratio was -0.0135%. In other words, the realized value of ADA is worth more than its market capitalization.
It is possible to see that almost nothing has happened on ADA, as development activity has decreased while the price continues a long bearish trend. The above indicates that it could fall further during the crypto winter if a relevant event does not occur after the Vasil hard fork.
While cryptocurrency investors wait for the Cardarno upgrade to occur, around 95% of the blocks have already emerged. However, the network must continue the process to reach the 75% threshold.
Meanwhile, ADA is trading at around USD 0.4769 and has accumulated a 3% gain over the last 24 hours. While its daily trading volume is above USD 462.87 million, its market capitalization is about USD 16.09 billion, according to CoinGecko.
Investors should research ADA or any other crypto assets before buying it to know its all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to avoid the risk of losing money. It is only a matter of time before seeing where the price of this growing crypto asset will head next.
By Alexander Salazar
