Since Cardano’s launch in 2017, its ADA token has seen wild swings in price. Now that a support level looks to have been established, there are several reasons why Cardano is holding its value.
Following a historic run at the start of 2021, Cardano broke past its previous all-time high of $1.18 established in 2018. Since then, crypto markets have experienced a pullback, with Cardano being no exception. Top ten projects such as Ripple were hit hard, with XRP losing up to 70% of its value since April. Polkadot, the 9th largest cryptocurrency by market cap, has fared slightly worse, falling over 73%.
However, while the ADA token fell with the rest of the market in May, its previous all-time high looks to be acting as support. Cardano has shed less of its gains than other top ten coins since the market peaked, falling only 48% from its current all-time high of $2.47 achieved on May 17. While other projects have slowly declined in value, Cardano has held up in the $1 to $1.20 range.