Cardano price remained under pressure on Saturday, Nov. 1, and observers wonder whether it could be at risk of further downside.
Summary
- Cardano price has formed a death cross pattern on the daily chart.
- Charles Hoskinson offered a long rebuttal to Cardano’s criticism.
- He addressed issues like its stablecoin adoption and DeFi growth.
Cardano (ADA) token dropped to $0.6100, down by 40% from its highest point in August and 53% from the December high. This means that $10,000 invested in December would be worth about $4,640.
According to one X user who goes by “BobbyJuice,” Cardano is “on life support” and faces six key issues currently holding it back: the absence of native stablecoins, low liquidity and total value locked, network congestion, minimal on-chain adoption, negligible marketing reach, and lack of interoperability and bridges.
Cardano founder Charles Hoskinson responded, defending the decentralized blockchain platform and its token. For example, he refuted claims that a Tether (USDT) and USD Coin (USDC) on the network would boost the price of Cardano and its DeFi ecosystem.
He also noted that the TVL does not include all the useful data. For example, he said that the metric did not have the billions of dollars worth of ADA involved in staking.
On the 19,000 daily active users, Hoskinson noted that the metric did not include the millions of people staking the network.
Additionally, Hoskinson believes that Midnight, its sidechain, will solve most of the chain’s other problems. Midnight is its sidechain, which is designed to enable secure, confident contracts and dApps.
Midnight has already secured over 80 partnerships, including top players like Brave, Alchemy, BitGo, and Anastasia Labs.
Therefore, with Midnight as a Cardano asset, Hoskinson expects that Cardano will benefit by having a higher TVL, users, and stablecoin supply.
Other X users jumped to Cardano’s defense, too, noting the updates that have hit the ecosystem. Just recently, the blockchain rolled out a security-boosting upgrade called “Ouroboros Phalanx.”
Cardano price technical analysis
The daily timeframe chart shows that the ADA price has slumped in the past few weeks. It has dropped from a high of $1.0143 in August to $0.60 today.
Cardano price has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages have crossed each other. It has also formed a bearish pennant pattern and remained below the Ichimoku and Supertrend indicators.
Therefore, the most likely scenario is where Cardano continues falling, with the next target being at $0.5060, its lowest level in February and April this year. This target price is about 17.5% below the current level.
