As of late, Cardano's price action on the charts shows an apparent lack of strength from the bulls.
The bears have taken this lack of bullish enthusiasm as an opportunity to push the price of ADA below the major support around the $0.4233 zone. Such a steep move to the downside may have devastating consequences if the bulls fail to make a market correction. The bears may push the price of ADA further downwards in an even bigger selloff.
The price action on ADA over the long term has now formed a descending channel if one takes how the price of the cryptocurrency has reacted since May this year into perspective.
The ADA price action appears to show strong signs of a bearish breakout. If the bears push the price below the $0.4233 zone, the cryptocurrency price may experience a 40% selloff to the $0.241 level, as illustrated below.
Coupled with the disturbing price action on ADA, Bitcoin also appears to be shaky. If bitcoin loses its grip around the $19,000 zone, this may affect ADA and cause this 40% move to the downside.
In recent times, there have been fears about Cardano only being nothing more than a ghost chain.
Over the long term, the growth of Cardano as a blockchain has been limited compared to the others. Assets like Bitcoin, Ethereum, XRP, and Polkadot have made their names in their respective niches and have achieved widespread acceptance. Even Shiba Inu has become very popular among whales.
Cardano has been excluded from most crypto communities, even completely ignored by platforms like Robinhood and Gemini.
However, a Cardano community resource made available has proven that Cardano is not a ghost chain.
According to the resource, despite how things seem, the growth on Cardano has been massive, and 25% of all the transactions on the chain happened in the last year.
As gathered, 51.3 million transactions have happened on the Cardano blockchain over the past year, of which 12.5 happened due to the Alonzo hard fork that went live in 2021.
According to Cardano's on-chain data, there were 3292 smart contracts on the Cardano platform before the Vasil hard fork as of September 22. In early October, there were now 3,392 smart contracts, signaling a monthly increase of 100 extra Dapps.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)