Cardano’s native ADA token has seen a steep 14% price drop over the past week, falling from around $0.62 to $0.51.
This raises questions about whether ADA will rebound soon or if its bull run is entirely over.
While Cardano’s long-term prospects may remain uncertain, a new Ethereum-based altcoin called Bitcoin Minetrix (BTCMTX) has been gaining attention for its innovative mining technology.
ADA Price Drop Continues with No Signs of Slowing Down
It’s been a rough week for Cardano holders, with the token now one of the worst performers among major altcoins.
ADA hit a high of $0.694 as recently as December 15, yet has now slid 26% below that level.
The past few days have seen spot trading volumes decrease by 15%, indicating a slowdown in buyer interest.
From a technical analysis perspective, ADA is showing signs of further weakness.
After failing to break resistance at $0.62 last Thursday, the token has put in lower highs and lower lows on the 4-hour chart.
This negative momentum resulted in ADA dropping below its 50-day exponential moving average (EMA).
The 50-day EMA is a closely watched indicator of the overall trend, so falling below this level likely turned some short-term traders bearish on Cardano.
With the selloff showing few signs of slowing down, Cardano holders now have to decide whether this is just a temporary pullback within a larger uptrend or if the recent rally has ended abruptly.
Can Cardano Bounce Back Amid the Bearish Investor Sentiment?
While the recent price action paints a gloomy picture, there are reasons to believe Cardano could bounce back.
Despite the selloff, Cardano has several major developments on the horizon that could reignite demand for ADA.
These include the upcoming Chang hard fork to enable community governance, a series of constitution workshops to decide future protocol changes, and continuing growth of off-chain governance through Intersect.
Additionally, founder Charles Hoskinson has referred to 2024 as Cardano’s “Mithril Age,” where the network runs smoothly, and node bootstrapping takes under 20 minutes.
There has also been a 250% surge in development activity on Cardano at the start of the year, showing developers remain dedicated to the project.
With so much activity in the background, ADA could rally once again if buyers regain confidence that Cardano’s roadmap is progressing well.
However, if bearish sentiment continues to dominate in the near term, ADA could retest support around $0.50 before any meaningful rebound occurs.
Bitcoin Minetrix Primes as Exciting New Altcoin That Could Rival Cardano in 2024
Although Cardano is working through a bearish period, a new altcoin called Bitcoin Minetrix (BTCMTX) has been gaining buzz as a potential breakout project.
Currently in presale for $0.0129, Bitcoin Minetrix has already raised $8.7 million before its official launch.
Its innovative Stake-to-Mine feature is receiving particular attention, given that it allows BTCMTX holders to stake their tokens and earn cloud mining credits over time.
These credits can then be burned to gain cloud mining power or a share of the associated mining yields.
Not only does this feature incentivize holding BTCMTX long term, but it also provides token holders mining rewards without expensive computing or energy requirements.
As more crypto miners seek profitable options, Bitcoin Minetrix’s cloud solution could answer that need.
With presale demand ramping up, BTCMTX shows significant speculative upside potential this year.
The token has also been ranked second on CoinSniper.net – a widely used website for keeping tabs on trending ICOs.
Considering Cardano’s recent weakness, some investors could move to reassess their portfolio allocations and acquire BTCMTX in advance of its market debut.
Moreover, with 18,300 people now following the project on Twitter, social metrics point to growing retail interest, which could propel price action post-launch.
