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Why Is Cardano Price Dropping? ADA Hasn't Fell This Much Since September 2021

Published

1 year ago

on

Why Is Cardano Price Dropping? ADA Hasn't Fell This Much Since September 2021

The
cryptocurrency market is witnessing a significant correction in Cardano (ADA)
prices, with the token experiencing a sharp decline to $0.9, representing a 24%
decrease in the past 24 hours. This downturn comes after an impressive 216%
surge in November, raising questions about the sustainability of ADA’s recent
rally.

During
Monday’s session, ADA’s price dropped nearly 16%, closing the day at $1.
Intraday declines were even steeper, reaching a local low of $0.91. This
represented a temporary 24% loss for Cardano, marking the largest single-day
drop in over three years, since September 2021, when ADA’s price fell by 30%.

Today,
Tuesday, December 10, 2024, ADA’s price is seeing a slight correction, up 1.3%.
Currently, Cardano is trading at $1.02 on Binance. However, the recent drop
significantly impacted Cardano’s total market capitalization, which now stands
at $35.6 billion, pushing the token to the ninth position among the largest
cryptocurrencies by market cap.

Why is Cardano price down today? Source: TradingView

Despite the
decline, investor activity remains robust, with daily trading volume at $3.8
billion, exceeding that of Binance Coin (BNB), which is currently the
sixth-largest token in circulation.

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What is the current Cardano market capitalization? Source: CoinMarketCap

Current Market Status

The price
correction in Cardano reflects broader market dynamics and profit-taking
behavior. After reaching significant highs, ADA is showing signs of exhaustion
as traders engage in profit-taking activities. The Relative Strength Index
(RSI) has exited overbought territory, suggesting a cooling period for the
asset.

However, Cardano isn’t the only cryptocurrency experiencing a decline. Ripple’s XRP token also recorded its steepest drop in two months during a single session. A similar fate befell meme coins, including Shiba Inu (SHIB), which is undergoing a significant correction in price.

Cardano Price Technical
Analysis

Recent
technical analysis reveals that Cardano is testing critical support levels. The
token’s price action has formed bearish patterns, with increased selling
pressure from short-term holders.

Looking at
the ADA/USD chart, the price has stalled around the $1.25 level, which aligns
with local highs from April 2022, and is currently stuck in a consolidation
phase between this level and the $0.90 support.

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As long as
these two levels hold, I would expect the upward trend to continue. My outlook
will only change if the support zone, additionally reinforced by the 23.6%
Fibonacci retracement, is breached. In that case, it could open the door to
further levels marked on the chart and described in more detail below.

Cardano (ADA) price technical analysis. Source: TradingView

I believe any dips would present opportunities to accumulate ADA at lower and
more attractive prices. A break below $0.68, however, would shift my
perspective to a more bearish outlook.

Technical Support and
Resistance Levels

Key
Support Zones:

  • $0.9176 –
    23.6% Fibo retracement
  • $0.9 – psychological support line
  • $0.8 – local highs from March 2024
  • $0.68 – local highs from December 2023
  • $0.3 – lows from 2024

Resistance
Areas:

  • $1.1 – local high from November 2024
  • $1.25 – current main resistance zone,
    highs from November and December
  • $1.32 – intraday high from late November
  • $1.3349 – 38.2% Fibo retracement

ADA Volume Analysis

Trading
volume analysis indicates significant liquidations at higher price levels. Over
the past 24 hours, $1.6 billion has been wiped from the market, with $1.4
billion coming from leveraged long positions. Larger tokens account for most of
this movement, though ADA also has a visible share. In total, $23 million was
liquidated from leveraged positions in Cardano during the day, $20 million of
which came from longs.

Fundamental Factors Behind
the Cardano Price Drop

Profit-Taking Pressure

The primary
driver of the current price decline is widespread profit-taking following ADA’s
substantial gains. After climbing over 114.5% in the past year, investors are
naturally securing their profits, creating downward pressure on the price.

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It is worth also noting that Bitcoin did not sustain its position above $100K mark, which also heightened the current selling preassure.

Market Sentiment Shift

Recent
events have impacted market sentiment:

  • A social
    media hack of Cardano’s official accounts spread false information about an SEC
    lawsuit
  • The broader
    cryptocurrency market correction has affected altcoin performance
  • Technical
    indicators suggesting overbought conditions triggered cautious trading

Cardano Price Prediction: Future
Price Outlook

Short-Term Projections

The
immediate price trajectory appears challenging, with analysts predicting
potential consolidation in the coming weeks. Current technical indicators
suggest ADA could experience further correction before finding stable support.

Long-Term ADA Price Forecast

Despite
short-term volatility , long-term projections remain optimistic:

  • 2025
    predictions range from $0.8 to $2.5
  • 2026
    forecasts suggest potential growth to $3.1
  • 2027-2030
    projections indicate gradual appreciation toward $5.5

Predictions

Predicted Price

Advertisement

Timeline

CoinJournal

$2

Coming weeks

CoinCodex

Advertisement

Between $0.98 and $1.10

December 2024

Coin Edition

$9.41

2029

Advertisement

Coin Edition

$12.54

2030

Techopedia

$6

Advertisement

2030

You can
find more Cardano price predictions for 2025 and 2030 here. Finance Magnates has also prepared forecasts for other cryptocurrencies, including Dogecoin, for the year 2025.

Risk Factors

  • Several
    elements could influence future price movement:
  • Overall
    cryptocurrency market conditions
  • Regulatory
    developments
  • Technical
    breakthrough implementations
  • Institutional
    adoption rates

Should You Invest in
Cardano (ADA)?

The
platform continues to evolve with technological advancements and ecosystem
developments, which could positively impact future valuations. Network
improvements and increasing adoption rates remain crucial factors for long-term
price stability.

While
Cardano’s current price correction might concern some investors, it represents
a natural market cycle following significant gains. Technical indicators
suggest a period of consolidation, but fundamental strengths remain intact.
Investors should consider both short-term volatility and long-term potential
when making investment decisions.

The
combination of technical analysis, market sentiment, and fundamental
developments indicates that while ADA may experience continued pressure in the
near term, the overall trajectory maintains positive momentum for future
growth. However, as with all cryptocurrency investments, careful consideration
of risk factors and market conditions remains essential.

Advertisement

Cardano Price Prediction,
FAQ Section

Why is the Cardano price
low?

Cardano’s
recent price movements reflect profit-taking after a 168% surge over the past
month, with the price currently at $1.02. The market is undergoing a natural
correction phase following this substantial growth.

What is happening with ADA
Cardano?

ADA has
reached a market cap above $40 billion for the first time in three years, with
futures open interest hitting a 40-month high of $1.18 billion. The network’s
Total Value Locked (TVL) has significantly increased from $230 million to $705
million in December 2025.

Will ADA recover from
current levels?

Technical
analysis and market experts predict ADA will continue its growth trajectory,
with forecasts suggesting prices between $1.21 and $1.34 by the end of December
2024. Long-term projections indicate potential growth to $2.76 by 2025.

Is Cardano expected to go
back up?

Market
analysts maintain a bullish outlook, with predictions for 2024 ranging between
$1.21 and $2.02. Factors supporting this growth include increased whale
accumulation, network developments like the Hydra protocol, and growing DeFi
adoption.

The
cryptocurrency market is witnessing a significant correction in Cardano (ADA)
prices, with the token experiencing a sharp decline to $0.9, representing a 24%
decrease in the past 24 hours. This downturn comes after an impressive 216%
surge in November, raising questions about the sustainability of ADA’s recent
rally.

Advertisement

During
Monday’s session, ADA’s price dropped nearly 16%, closing the day at $1.
Intraday declines were even steeper, reaching a local low of $0.91. This
represented a temporary 24% loss for Cardano, marking the largest single-day
drop in over three years, since September 2021, when ADA’s price fell by 30%.

Today,
Tuesday, December 10, 2024, ADA’s price is seeing a slight correction, up 1.3%.
Currently, Cardano is trading at $1.02 on Binance. However, the recent drop
significantly impacted Cardano’s total market capitalization, which now stands
at $35.6 billion, pushing the token to the ninth position among the largest
cryptocurrencies by market cap.

Why is Cardano price down today? Source: TradingView

Despite the
decline, investor activity remains robust, with daily trading volume at $3.8
billion, exceeding that of Binance Coin (BNB), which is currently the
sixth-largest token in circulation.

What is the current Cardano market capitalization? Source: CoinMarketCap

Advertisement

Current Market Status

The price
correction in Cardano reflects broader market dynamics and profit-taking
behavior. After reaching significant highs, ADA is showing signs of exhaustion
as traders engage in profit-taking activities. The Relative Strength Index
(RSI) has exited overbought territory, suggesting a cooling period for the
asset.

However, Cardano isn’t the only cryptocurrency experiencing a decline. Ripple’s XRP token also recorded its steepest drop in two months during a single session. A similar fate befell meme coins, including Shiba Inu (SHIB), which is undergoing a significant correction in price.

Cardano Price Technical
Analysis

Recent
technical analysis reveals that Cardano is testing critical support levels. The
token’s price action has formed bearish patterns, with increased selling
pressure from short-term holders.

Looking at
the ADA/USD chart, the price has stalled around the $1.25 level, which aligns
with local highs from April 2022, and is currently stuck in a consolidation
phase between this level and the $0.90 support.

As long as
these two levels hold, I would expect the upward trend to continue. My outlook
will only change if the support zone, additionally reinforced by the 23.6%
Fibonacci retracement, is breached. In that case, it could open the door to
further levels marked on the chart and described in more detail below.

Advertisement

Cardano (ADA) price technical analysis. Source: TradingView

I believe any dips would present opportunities to accumulate ADA at lower and
more attractive prices. A break below $0.68, however, would shift my
perspective to a more bearish outlook.

Technical Support and
Resistance Levels

Key
Support Zones:

  • $0.9176 –
    23.6% Fibo retracement
  • $0.9 – psychological support line
  • $0.8 – local highs from March 2024
  • $0.68 – local highs from December 2023
  • $0.3 – lows from 2024

Resistance
Areas:

  • $1.1 – local high from November 2024
  • $1.25 – current main resistance zone,
    highs from November and December
  • $1.32 – intraday high from late November
  • $1.3349 – 38.2% Fibo retracement

ADA Volume Analysis

Trading
volume analysis indicates significant liquidations at higher price levels. Over
the past 24 hours, $1.6 billion has been wiped from the market, with $1.4
billion coming from leveraged long positions. Larger tokens account for most of
this movement, though ADA also has a visible share. In total, $23 million was
liquidated from leveraged positions in Cardano during the day, $20 million of
which came from longs.

Fundamental Factors Behind
the Cardano Price Drop

Profit-Taking Pressure

The primary
driver of the current price decline is widespread profit-taking following ADA’s
substantial gains. After climbing over 114.5% in the past year, investors are
naturally securing their profits, creating downward pressure on the price.

It is worth also noting that Bitcoin did not sustain its position above $100K mark, which also heightened the current selling preassure.

Advertisement

Market Sentiment Shift

Recent
events have impacted market sentiment:

  • A social
    media hack of Cardano’s official accounts spread false information about an SEC
    lawsuit
  • The broader
    cryptocurrency market correction has affected altcoin performance
  • Technical
    indicators suggesting overbought conditions triggered cautious trading

Cardano Price Prediction: Future
Price Outlook

Short-Term Projections

The
immediate price trajectory appears challenging, with analysts predicting
potential consolidation in the coming weeks. Current technical indicators
suggest ADA could experience further correction before finding stable support.

Long-Term ADA Price Forecast

Despite
short-term volatility , long-term projections remain optimistic:

  • 2025
    predictions range from $0.8 to $2.5
  • 2026
    forecasts suggest potential growth to $3.1
  • 2027-2030
    projections indicate gradual appreciation toward $5.5

Predictions

Predicted Price

Timeline

Advertisement

CoinJournal

$2

Coming weeks

CoinCodex

Between $0.98 and $1.10

Advertisement

December 2024

Coin Edition

$9.41

2029

Coin Edition

Advertisement

$12.54

2030

Techopedia

$6

2030

Advertisement

You can
find more Cardano price predictions for 2025 and 2030 here. Finance Magnates has also prepared forecasts for other cryptocurrencies, including Dogecoin, for the year 2025.

Risk Factors

  • Several
    elements could influence future price movement:
  • Overall
    cryptocurrency market conditions
  • Regulatory
    developments
  • Technical
    breakthrough implementations
  • Institutional
    adoption rates

Should You Invest in
Cardano (ADA)?

The
platform continues to evolve with technological advancements and ecosystem
developments, which could positively impact future valuations. Network
improvements and increasing adoption rates remain crucial factors for long-term
price stability.

While
Cardano’s current price correction might concern some investors, it represents
a natural market cycle following significant gains. Technical indicators
suggest a period of consolidation, but fundamental strengths remain intact.
Investors should consider both short-term volatility and long-term potential
when making investment decisions.

The
combination of technical analysis, market sentiment, and fundamental
developments indicates that while ADA may experience continued pressure in the
near term, the overall trajectory maintains positive momentum for future
growth. However, as with all cryptocurrency investments, careful consideration
of risk factors and market conditions remains essential.

Cardano Price Prediction,
FAQ Section

Why is the Cardano price
low?

Cardano’s
recent price movements reflect profit-taking after a 168% surge over the past
month, with the price currently at $1.02. The market is undergoing a natural
correction phase following this substantial growth.

Advertisement

What is happening with ADA
Cardano?

ADA has
reached a market cap above $40 billion for the first time in three years, with
futures open interest hitting a 40-month high of $1.18 billion. The network’s
Total Value Locked (TVL) has significantly increased from $230 million to $705
million in December 2025.

Will ADA recover from
current levels?

Technical
analysis and market experts predict ADA will continue its growth trajectory,
with forecasts suggesting prices between $1.21 and $1.34 by the end of December
2024. Long-term projections indicate potential growth to $2.76 by 2025.

Is Cardano expected to go
back up?

Market
analysts maintain a bullish outlook, with predictions for 2024 ranging between
$1.21 and $2.02. Factors supporting this growth include increased whale
accumulation, network developments like the Hydra protocol, and growing DeFi
adoption.

Advertisement
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Crypto mogul Do Kwon sentenced to 15 years in prison over $40B ‘epic fraud’

Published

1 day ago

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December 11, 2025

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Crypto mogul Do Kwon sentenced to 15 years in prison over B ‘epic fraud’

Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced on Thursday to 15 years in prison for for what a judge called an “epic fraud.”

U.S. District Judge Paul A. Engelmayer, who handed down the sentence, sharply rebuked Kwon for repeatedly lying to everyday investors who trusted him with their life savings.

“This was a fraud on an epic, generational scale. In the history of federal prosecutions, there are few frauds that have caused as much harm as you have, Mr. Kwon,” Engelmayer said during a hearing in Manhattan federal court.

Crypto Mogul Do Kwon, shown in 2023, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. REUTERS

Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.

He is one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies.

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Dressed in yellow prison garb, Kwon addressed the court and apologized to his victims, including the hundreds who submitted letters to the court describing the harm they had suffered.

“All of their stories were harrowing and reminded me again of the great losses that I’ve caused. I want to tell these victims that I am sorry,” Kwon said.

Ayyildiz Attila, one of the hundreds of victims who submitted letters to the court, said he lost between $400,000 and $500,000 in the collapse.

Kwon in custody in Montenegro in 2024. AP

“My savings, my future, and the results of years of sacrifice disappeared. I struggled to keep up with payments and responsibilities, and everything I had worked forwas erased,” Attila said.

Kwon’s lawyer Sean Hecker said in an email after the sentencing that Kwon spoke from the heart, expressed genuine remorse and will continue his efforts to make amends.

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US Attorney Jay Clayton in Manhattan said in a statement following the hearing that Kwon devised elaborate schemes to inflate the value of his cryptocurrencies and fled accountability when his crimes caught up to him.

Prosecutors had asked for a sentence of at least 12 years in prison, saying the crash of Kwon’s Terra cryptocurrency caused billions of dollars in losses and triggered a cascade of crises in the crypto market.

Kwon’s lawyers had asked that he be sentenced to no more than five years so he can return to South Korea to face criminal charges.

Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. REUTERS

Prosecutors charged Kwon in January with nine criminal counts for securities fraud, wire fraud, commodities fraud and money laundering conspiracy.

Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as “Terra Protocol” had restored the coin’s value.

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Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.

Kwon pleaded guilty in August to two counts, conspiracy to defraud and wire fraud, and apologized in court for his conduct.

“I made false and misleading statements about why it regained its peg by failing to disclose a trading firm’s role in restoring that peg,” Kwon said at the time. “What I did was wrong.”

Kwon agreed in 2024 to pay $80 million as a civil fine and be banned from crypto transactions as part of a $4.55 billion settlement he and Terraform reached with the Securities and Exchange Commission.

He also faces charges in South Korea. As part of his plea deal, prosecutors will not oppose Kwon’s potential application to be transferred abroad after serving half his US sentence.

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