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Cardano founder speaks on volatile markets

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Nonhlanhla P Dube
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The market has clearly acknowledged the arrival of a cryptowinter. This is reflected in the market pricing of numerous digital assets. However, as expected, investors in the space are concerned about how long this cryptowinter will endure. According to prior markets, the market could be in for a long haul, but Cardano founder Charles Hoskinson has shared his thoughts on how long he feels the bear will last.

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Prepare Yourself for Months of Cryptowiner

With the prices of major cryptocurrencies such as Bitcoin and Cardano falling, theories about when the market will bottom out abound. Generally, the negative sentiment that has flooded over investors in the market has not helped matters, as prices have continued to fall as a result. Nonetheless, some are attempting to predict when the market will reach its ultimate bottom.

Cardano founder Charles Hoskinson has detailed what he anticipates will happen to the market in a new whitepaper. The tweet, which begins by welcoming individuals for whom this was their first crypto winter, also included a timeframe. According to the Ethereum co-founder, this downturn will last several weeks to a month

“If this is your first cryptowinter, then welcome,” said Hoskinson. “Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder.”

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ADA Is Still Suffering

Cardano (ADA) has been one of the most severely impacted digital assets as a result of cryptowinter. The digital asset, which reached an all-time high of $3.10(R50.28) last year upon the implementation of smart contract functionality, has lost the majority of its value by May 2022. According to Messari data, the digital asset is now down 85.39 % from its all-time high.

Once bears drove the cryptocurrency below $0.5(8.11), it appears all hope for a return to the coveted $1(R16.22) level was lost. This suggested that the asset was now trading well below its 50-day moving average, a key indicator for short-term movement.

In the long run, ADA continues to underperform. The sentiment is now entirely skewed in favour of selling, indicating that this is a seller’s market. Investors in ADA have not been spared the carnage, as it is currently one of the worst-performing in terms of profit, with more than 70% of investors holding bags of losses.

At the time of writing, the digital asset is worth $0.454(R7.36).

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube