The recent decline in Cardano (ADA) price has left investors puzzled. While the broader crypto market experiences volatility, Cardano’s downward trend raises questions. Here’s a closer look at the factors contributing to ADA’s slump and why some experts are turning their attention to Algotech (ALGT) as an alternative
Cardano’s Challenges – Sluggish Development
Cardano has been experiencing a corrective phase for several weeks, marked by a consistent downward trend within a parallel channel. Despite a brief uptick last week, ADA failed to breach the Golden Ratio resistance at approximately $0.555, suggesting that the corrective pattern remains intact.
This ongoing correction may potentially result in a further decrease in ADA’s price, with a projected decline ranging between 12% to 20%. The target is the 200-day Exponential Moving Average (EMA) support level near $0.425. Alternatively, the next significant Fibonacci support is expected around $0.39.
Decreasing core developers and trading volume
The decline in ADA’s price since mid-December seems to correlate with a decrease in both trading volume and the number of core developers, as indicated by data from TokenTerminal.
According to TokenTerminal, there has been a notable reduction in the number of unique GitHub users making multiple commits to ADA’s public GitHub repository on a daily basis. This figure dropped from a three-month peak of 164 developers on December 10, 2023, to 123 on January 18, representing a 25% decrease.
CoinMarketCap data further highlights a significant decline in ADA’s daily trading volume, which decreased from approximately $1.165 billion on December 10, 2023, to $381 million on January 18. Additionally, transaction volume decreased by 87% during the same period, falling from around $2.34 billion to $304 million.
These declines in trading volume and developer activity appear to have impacted ADA’s short-term price movements, with the token experiencing a 27% price drop over the same period. This suggests that these metrics may have influenced ADA’s price trends leading up to January 19.
Algotech Emerges as an Alternative for 10X Returns
Investors are seeking alternative projects with promising returns and the potential to outperform established ones. Algotech (ALGT) is emerging as a compelling substitute for Cardano (ADA) due to its enticing rewards and user-centric incentives.
Having raised over $1.1 million in just two days, Algotech is poised for further growth, particularly as the market anticipates emerging opportunities in February, ahead of significant crypto events like the Bitcoin Halving and ETH ETF approvals.
Community members of Algotech enjoy governance rights, profit-sharing opportunities, and access to advanced trading strategies such as hedging, mean reversion, and algorithmic consolidation.
Algotech is witnessing a surge in presale demand with the potential for a price surge from $0.04 to $1 in the coming weeks. The deflationary ERC-20 coin is also supported by deflationary tokenomics, ensuring sustained reinvestment for platform development and growth.
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