While rivals have rebounded to their former trading levels, Cardano, conversely, has encountered challenges.
In early March, Cardano garnered attention by surpassing historical resistance levels and surging to its highest point in two years at $0.8, fueling hopes of reaching the coveted $1 mark. With only a 20% gain needed to achieve this milestone, ADA seemed poised for another breakthrough. However, the market sentiment quickly shifted when Bitcoin experienced a downturn, causing turmoil in the altcoin market. While many tokens have recovered to their previous levels since then, Cardano has faced challenges in its recovery process.
The Gradual Rebound of Cardano
The initial excitement turned into disappointment when Cardano faced a significant 30% decline in the latter half of the month, reaching as low as $0.57. This downturn was primarily triggered by Bitcoin's sharp drop from its record high of $73,000 to $60,000. Following Bitcoin's trajectory, altcoins experienced substantial declines, causing chaos in the market. However, the market quickly rebounded, with ADA recovering to $0.61 after the Federal Reserve announced its dovish outlook for 2024.
Despite the market's overall rebound, Cardano's struggle to surpass $0.7 is causing concern. While Bitcoin, Ethereum, Solana, and BNB have returned to their previous levels, ADA is facing challenges in regaining its position. At the time of writing, Bitcoin was trading at $70,500, Ethereum at $3569, and Solana at $188.
Adding to the apprehension is the concerning trend of the Cardano-BTC pair, with Bitcoin extending its lead with a historic rally while ADA lags behind in its recovery. However, there is a glimmer of hope on the horizon. The last time the Cardano-BTC pair was at this level was in December 2023 when ADA surged by over 100%.
Apart from Cardano, the majority of the top ten tokens are either approaching their all-time highs or have already achieved new highs this year. In contrast, ADA still needs to achieve an 80% increase to reach its all-time high of $3.1.
While it remains uncertain whether ADA will gain enough momentum to surpass even $1, it would be unwise to underestimate the token. Last year, Cardano experienced a significant surge, becoming one of the top gainers among the top 10 tokens, with a 150% increase.
March 2024, Cryptonitauae