Cardano (ADA) Drops in Rankings as ADA/BTC Hits Record Low, Raising Fresh Concerns

The ADA price is in a bad place. Cardano is dropping in rankings in cryptocurrencies by market cap. The ADA/BTC pair is at an all time low. And the community is turning on the Cardano Foundation. 

Chris O, a Cardano DRep, says the sell pressure is coming from the FEs. He points out that the Cardano Foundation, whose mission is to grow Cardano and protect the value of ADA, sold ADA to buy Bitcoin. The community is furious. The ADA price is $0.2478. The chart is showing lower lows. And the whales are still accumulating.

What the ADA/BTC Chart Shows

We had a look at the ADA/BTC weekly chart shared by Chris. The pair is trading at 0.00000319 BTC, up 0.31% today but down 36.33% all time. The chart shows a long, brutal downtrend. The ADA/BTC pair has been making lower highs and lower lows for years. 

The current level is near the all time low. That is not a strong position. When ADA/BTC is at an all time low, it means Bitcoin is outperforming Cardano by a wide margin. Capital is flowing out of ADA and into BTC. That is a bearish signal for the ADA price.

Mr Brownstone notes that the white count is appearing more and more favorable that the bottom is not yet complete. He still anticipates the ADA price declining below $0.21, which will activate the generational buying opportunity. That is a bold call. The ADA price is at $0.2478. A drop to $0.21 would be another 15% decline.

What the ADA 4-Hour Chart Shows

The 4-hour chart from Mr Brownstone shows the ADA price at $0.247794, grinding lower. The chart shows a series of lower highs and lower lows. The ADA price has been rejected from the $0.26 level multiple times. 

Each rejection sends the price lower. The support below is at $0.24, then $0.23, then $0.22, then $0.21. The selling pressure is coming from the Cardano Foundation and other entities. The volume on the drops is higher than the volume on the bounces, which tells you that sellers are more aggressive than buyers. 

The RSI is drifting down, not yet oversold. That means there is room to fall further before any bounce. The ADA price is not showing any signs of a bottom yet. Lower highs are still forming. The trend is down. The chart is clear. The selling is not over.

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The Community Backlash and The Bullish Counter

Chris O is furious. He says the Cardano Foundation sold ADA to buy Bitcoin, prioritizing their own self interest and protecting their wealth that the community gave them. He says it is time to have a serious conversation about them. 

The community is waking up to the fact that the entities funded by the treasury are not acting in the best interest of the ADA price. The ADA price is already under pressure. Now the community is questioning the people who are supposed to be stewards of the network.

Not everything is bearish. On-chain data shows that wallets holding 100,000 to 100 million ADA have accumulated roughly 819 million ADA over the past six months, about 1.6% of the total supply. That is whale accumulation. Large holders are buying while retail is selling and the community is fighting. 

What Comes Next for ADA

The ADA price is at $0.2478. The ADA/BTC pair is at an all time low. The bottom may not be in yet. Mr Brownstone sees a drop to $0.21 as the generational buying opportunity. The whales are accumulating. The community is fighting. The Cardano Foundation is selling ADA for Bitcoin. 

The ADA price is caught in the middle. The next few weeks could be ugly. Or the whale accumulation could finally kick in and reverse the trend. The ADA price is the only thing left to decide. 

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The post Cardano (ADA) Drops in Rankings as ADA/BTC Hits Record Low, Raising Fresh Concerns appeared first on CaptainAltcoin.