The crypto market is on the edge of a potential market wide bearish reversal that may set the capitalization back below $200 billion USD as Bitcoin (BTC) shortly breached below $9,000 USD in the early trading hours of the U.S market on Wednesday. The sharp decline in BTC’s price is influencing a market wide bloodshed with Cardano (ADA) leading in loses recorded over the past 24 hours amongst top altcoins.
Cardano loses over 11% in a day
The eleventh placed cryptocurrency on the Coinmarketcap charts, plummeted 11.91% in the past 24 hours to trade at $0.0500 USD, as at time of writing. The huge fall in price precedes two consecutive red days, totaling a loss of 19% over the past 72 hours.
The fortunes of ADA quickly took a turn after a successful start to the year whereby the community celebrated the successful launch of the Ouroboros BFT hard fork in January. Now the bulls are struggling to maintain buy momentum, as the price faces a slip below key support level at $0.0450 USD.
If bulls lose this level, then the market faces a death spiral towards lower levels and may undo the huge 50%+ returns gained against so far against the dollar in 2020. Optimistically, the price may be up for a bullish push with the upcoming developments of Byron and Shelly upgrade launch.
Can Byron and Shelley rejuvenate the ADA market?
Cardano developers and the community are upgrading their blockchain in a bid to make it more decentralized and secure. On its roadmap, the Shelley update, also referred to as Cardano 2.0, is the key introducing these changes to the system.
Charles Hoskinson, Cardano’s founder, in a YouTube video confirmed the launch of the Byron Reboot update, an intermediary step to smoothen out transmission to the Shelley update, will be ready by mid-March. He said,
“So we are finishing up the sprint for this month and the next sprint will be the polishing and finishing the sprint for the Byron reboot. So with any luck, mid-March is when we will expect to see that.”
This fast tracks the launch of the Shelley update to latest time in early May, meaning the users will be able to enjoy new decentralized functionalities on the system soon. Could this be the key to unlocking ADA’s potential to higher highs? Could bulls use this opportunity to stack up and prevent a dip below the key support at $0.045 USD?
