Cardano, -90% from all-time high...Is it the bottom or an endless fall?

▲ Cardano (ADA)/AI-generated image

Cardano (ADA) is experiencing a harsh downturn, having plummeted more than 90% from its all-time high. However, it is eyeing opportunities for ecosystem revival, leveraging large-scale technological upgrades and improvements in the regulatory environment.

Crypto media outlet The Crypto Basic reported on April 9 (local time), analyzing Cardano's current technical situation, which has fallen over 90% from its all-time high of $3.10, and its potential for a future rebound. Cardano is currently trading around $0.24, with investor sentiment significantly dampened by prolonged downward pressure. However, behind the charts, technical indicators are beginning to stabilize, and signs of easing selling pressure are being detected.

In contrast to retail investors exiting due to consecutive price drops, large investors, or whales, are quietly accumulating holdings. According to Santiment's on-chain data, the number of whale wallets holding over 10 million ADA recently reached a four-month high of 424, indicating an influx of bottom-buying. Open interest in the futures market remains at approximately $401.35 million, significantly reduced from past highs, suggesting that overheated speculative positions in the market have been cleared.

Significant technical advancements are also being observed. The Cardano network recently launched Midnight, a privacy-focused sidechain, and completed preparations for its next major hard fork with the Node 10.7.0 update. On the regulatory front, Cardano's official classification as a digital commodity in the US is seen as having resolved legal uncertainties, paving the way for institutional investors. Stablecoin activity and decentralized finance liquidity are also showing consistent recovery.

Some critics argue that Cardano's ecosystem growth rate is slower compared to competing platforms. The total value locked (TVL) has decreased to less than $250 million, indicating a lack of substantial users. While Grayscale has submitted an application for a Cardano spot ETF, confirming institutional interest, major asset managers like BlackRock and Fidelity are still maintaining a wait-and-see approach.

Founder Charles Hoskinson has expressed his commitment to building a truly self-sufficient ecosystem through the Voltaire era, which will complete the network's decentralized governance. Hoskinson emphasized that Cardano will prove its long-term viability based on technical stability. To confirm a short-term price rebound, breaking the $0.28 resistance level with significant trading volume is crucial. Market participants are watching closely to see if Cardano can achieve a full trend reversal in conjunction with Bitcoin's performance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*