Cardano price struggled in November 2021. ADA started the month at about $2 and then rose by more than 22% to the monthly high of $2.3766. It then crashed by 44.55% to a multi-month low of $1.4235.
Today, the coin is trading at $1.5625, bringing its total market capitalization to more than $50 billion. This means that Cardano’s market capitalization has crashed by more than $40 billion.
Why did ADA price crash in November?
November was a difficult month for Cardano, which was once one of the top-performing cryptocurrencies. It is still unclear why ADA price has struggled even as Bitcoin, Ethereum, and Solana surged to an all-time high.
Still, it is worth noting that the freefall of Cardano did not start in November. Indeed, it started in September when it rallied to an all-time high of $3. The coin has crashed by almost 50% from its all-time high.
The likely reason why the Cardano price has crashed is that the Alonzo upgrade was relatively underwhelming.
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For starters, the network was created in 2016 with a goal of helping companies and other institutions solve some of their biggest challenges. In August this year, Cardano’s developers launched the most-awaited Alonzo Update.
This update was notable since it introduced the concept of smart contracts. This, in turn allowed developers to build applications such as those in the decentralized finance (DeFi) and non-fungible tokens (NFT) industry.
However, months after its launch, there has been no major app built using the platform. Perhaps, more mainstream apps will come in the future. Still, there are concerns about whether Cardano will ever become successful.
Besides, competition in the smart contracts industry has risen substantially in the past few months. Ethereum still has the biggest market share but others like the Binance Smart Chain (BSc), Solana, and Avalanche have gained share.
Cardano price prediction
The daily chart shows that the ADA price has been in a bearish trend in the past few months. And in November, the coin declined below the key support at $1.78. This was an important support since it was below the descending trendline shown in red.
Cardano dropped below the 25-day and 50-day moving averages (MA). It has also moved slightly below the neckline of the head and shoulders pattern. Therefore, there is a possibility that the Cardano price will drop to $1, which is about 36% below the current level,