Cardano (ADA), which is now trading far below $1, is forming a red candle for the seventh consecutive month, extending the protracted bearish phase for the largest Proof-of-Stake (PoS) asset.
A red candle indicates that the token’s closing price was lower than both its opening and preceding closing prices. This occurred for six straight months in the case of ADA and appears to be on course to occur for a seventh.
Cardano has been on a monthly red candle run since September 2021, with the last green candle lighting in August 2021, according to CoinMarketCap statistics.
Since August 2021, the price of the ADA token has been steadily declining, despite significant updates to the Cardano network and the Ouroboros protocol, including an update to the Daedalus wallet to version 4.9.0.
Since February 20, the token’s price has been below $1, representing a 4.92 percent decline over the previous seven days. At press time, the price of ADA is $0.8797, a decrease of 3.82 percent in the last 24 hours.
This is also a significant decrease from August 31 (when the final green candle burned out), when the price of one ADA was $2.77. To be more accurate, it has fallen by an incredible 68.27 percent.
Having said that, the blockchain’s total value locked (TVL) has made significant progress and continues to do so. As of press time, it is at $139.79 million, surpassing its previous all-time high of $133.39 million set on March 2.
According to DefiLlama data, the March 2 TVL record surpassed the previous all-time high of $130 million set on February 17.
Not to mention that since Cardano’s significant network upgrade in September, which included the addition of smart contract capability and increased the ADA’s scalability and speed, over 1000 smart contracts and over 3 million ADA wallets have been added.
Thus, traders are keenly monitoring ADA in light of its upgrades to determine whether it can escape a seventh consecutive red candle or if there is a suitable entry point to purchase Cardano.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.