Just when Cardano (ADA) users were bucking up their belts for a ride to the moon, the unthinkable just happens. The ADA prices have taken a major hit in the previous week. The prices have drop by an alarming 32.9% in a period of one week and the trend has just started.
This is the second time Cardano (ADA) is taking investors for a ride since the major drop that happened after December 2017. The drop that was witnessed in the first quarter of 2018 was a major one, especially following a very promising bullish trend that had gotten traders overjoyed. Although the Cardano network could not be wholly blamed for the drop in prices during the Q1, 2018 since the bearish trend was across all crypto markets, a second drop in prices could cost the network.
Everyone was all joy after the coin overturn the bearish trend at the beginning of April with most investors betting on a long term trend. And true to the momentum that the ADA coin had, the coin maintained a bullish trend for a month giving investors more hoe that the coin is destined to greater heights.
What is causing this bearish trend in Cardano (ADA)?
Cardano (ADA) is still one of the most popular cryptocurrencies globally with a market cap of $6,546,274,186 USD and a daily trading volume of $332,272,000 USD and it is currently ranked at position 7 according to market capitalization.
Its major boost comes from its rising popularity in South Korea especially because of its links with Upbit crypto currency exchange which is a South Korean crypto exchange platform.
However things in South Korea are not as rosy as we might think. There is a flash investigations that has been launched by the South Korean government against Upbit just a few months after announcing its push to regulate cryptocurrencies in the country. This has negatively affected Cardano (ADA) and hence the current drop in the value of ADA.
Is the $1.0 Cardano (ADA) target still live?
If the current bearish trend persists, then the $1.0 ADA target could be turned into just a mare dream.
However, if the current standoff between Upbit and the South Korean Government is resolved, analyst believe that ADA will get on its feet once again and the $1.0 target could be within reach in 1 or 2 months’ time.
Investors can recall that the crypto coin once hit $1.0 early January this years after the much hyped price hike following the Christmas festive season. The prices actually went past $1.2 at that time.
The Cardano (ADA) development team is also working very hard to ensure that it saves the face of the Cardano Token in addition to making the network more attractive to users. Currently the team has tackled most of the objectives on its roadmap: the Byron phase, Shelley phase, Goguen phase and Basho Phase. They are yet to start working on the Voltaire phase but they should be starting it in the coming months.
Once done with the Voltaire phase, the cryptocurrency is set to be extremely scalable and secure. They already introduced the DAEDALUS wallet accounts after working on paper wallets and recently they also cooperated with ledger to have Cardano (ADA) compatible with the ledger hardware wallets.