ADA is not looking very good amidst the recent stormy weather that has swept the crypto markets. The asset had been amassing gains in the past weeks and subduing key resistances effortlessly. However, the recently engineered turbulent corrections have knocked ADA far below its major support.
ADA plunges to $0.44—its lowest value in August
With a 24-hour decline of 13%, Cardano is one of the loftiest losing assets in the current correction phase. Amongst the Top 10 crypto assets by market capitalization, ADA is second in most significant losses in the past 24 hours—only below Dogecoin (DOGE) with a 14% decrease.
ADAUSD Chart by TradingView
Currently trading at $0.44, Cardano has dipped below two major support zones in one drop—$0.55 and $0.50. ADA reached a peak of $0.59 on August 14, the highest value it has seen since June 11. However, in just five days, the asset witnessed a 20% drop from this value to the current $0.44 price. This is ADA’s lowest value in August.
As an asset’s price partly influences its valuation, this surprising dip in ADA’s value has caused the asset to drop by two spots from its 6th most prominent crypto asset position. Cardano is now 8th, as (XRP) and Binance USD (BUSD) have successfully flipped the coin. ADA now has a market capitalization of $15.2B—an alarming drop from the $20B valuation of August 14.
Developer highlights issue with the ADA testnet
This abysmal performance from Cardano follows consecutive weeks of auspicious price movements. After conquering both resistance levels at $0.50 and $0.55 in less than three weeks, ADA was looking to test the $0.60 zone, using $0.55 as support.
With the current price drop, ADA might need a more positive outlook than the rest of the markets to return to recent highs. The date of the Vasil Hard Fork remains unknown. Notwithstanding, like The Merge, this upgrade could assist in ADA’s price action as the hype around it gains traction.
On Thursday, an ADA developer Adam Dean highlighted an issue with the ADA testnet. He noted that the issue was due to a bug in Cardano Node 1.35.2. This is likely to have sent a wave of panic within the Cardano community.
Despite this, a recent Santiment chart indicated a 4-month high in ADA’s Weighted Sentiments. Since the chart predates the current price drop, it indicates a growing positive outlook on the asset.