Cardano Price Dips 3%: Why Is ADA Falling?
Highlights
- Cardano price is down 3% over the last day as the downtrend continues.
- The SEC delay in approving a spot Cardano ETF is stoking a wave of bearish sentiment for prices.
- The rest of the cryptocurrency market has declined by nearly 1% in the last 24 hours.
Cardano price is undergoing a torrid patch as market sentiment turns negative for the tenth-largest cryptocurrency by market capitalization. ADA has fallen by 3% on the 24-hour chart, but weekly charts reveal an even steeper drop for the asset. The recent ETF delay by the SEC and the broader market decline are contributing to Cardano’s underwhelming price performance.
Cardano Price Falls By 3% Over The Last Day
According to data from CoinMarketCap, the Cardano price has taken a major hit over the weekend to trade at $0.69. The data from the crypto market aggregator indicates that ADA has fallen by 3% in the last 24 hours, accentuating a negative market sentiment.
Amid the price decline, daily transaction volumes have tumbled by 17.33% to settle at $841 million. A closer look at the charts reveals an even steeper drop of over 8% in the last seven days for the asset.
The Cardano price performance has gone contrary to market expectations, with analysts predicting ADA to rally by 6X.
At current prices, Cardano’s market capitalization sits at $24.3 billion, making it the tenth-largest cryptocurrency in terms of market size. The recent price decline led to Tron flipping Cardano to occupy the ninth place with its $25 billion market capitalization.
Why Is ADA Down?
Several reasons are in play for the Cardano price drawdown over the weekend. Firstly, market sentiment swung from optimistic to pessimistic after the SEC delayed a Cardano ETF application by Grayscale during the week.
In the build-up to the decision day, odds for a potential approval soared to 71%, stoking enthusiasm for an ADA rally. Ahead of the SEC’s decision, Cardano’s daily transactions reached 50,000 from previous lows of under 30,000. However, since the delayed decision, daily transaction volumes have fallen to 36,000.
Furthermore, Cardano’s price decline may be linked to profit-taking from the buzz associated with the SEC ETF decision. Technicals are also painting a grim picture for with several indicators hinting at a sustained drawdown for the Cardano price.
The recent cryptocurrency market downturn is also affecting ADA’s price, with several assets shedding a significant portion of their value over the last day. SOL, DOGE, and TRON are facing their fair share of bearishness as the global cryptocurrency market value loses nearly 1% in market capitalization.
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