Cardano Emulates 30% Crash and 2022 Bottom Signal
One of Cardano’s (ADA) biggest challenges is upon us, as Cardano has fallen below $0.16 for the first time since December 2020. $0.163 on June 5, and falling about 30% in 5 days, has sparked greater concern for the network’s future. The decline has been significant in value, but looking at historic prices and considering the increased on-chain activity, Cardano might be on the verge of a crucial inflection point.
The recent, and perhaps the most significant, price decline that Cardano has experienced has come at a time of great uncertainty in the Cardano ecosystem. The shutdown of Cardano projects TapTools and JPG Store have left many to believe the Cardano network is receiving less attention and less work is being done.
These sentiments have only heightened after Cardano’s founder, Charles Hoskinson, said he would stop discussing Cardano publicly a few days before the community governance vote, which is set to conclude on June 9.
Similar to last December, Cardano’s ADA price is in a precarious position after the price fell significantly from its all-time high of $3.10 in August 2021, and got to a low of about $0.23. This also marked the time Cardano experienced a death-cross for the first time. (a bearish pattern that signals a sell-off when the short-term moving average (MA) drops below the long-term MA). While this is a bearish momentum pattern, from December 2022 Cardano’s ADA price started to recover and Cardano entered an accumulation phase.
Following the death-cross, Cardano’s ADA price managed to climb to $0.46 and post a price increase of 100%. After another downward movement, the same bearish pattern has returned today.
With ADA down 30% in a week and at a six-year low at almost $0.16, some analysts say the market may be at one of the bottom phases seen in late 2022.
On-Chain Activity Increases in Advance of June 9 Governance Vote
Looking at the blockchain, things are slightly improving. Santiment says Cardano had a surge of 28,459 daily active users, the highest since April 2026, and is on the rise in the days leading up to the vote. While the price goes down, the community is showing the governance vote is strong.
Active addresses are proof of community engagement with the network and governance, and there are many open disputes. Due to the nature of the Cardano Blockchain, community engagement and participation are highly valued, especially for voting on governance issues as Cardano stakeholders prepare for the votes that could affect the ecosystem.
Cardano founder Charles Hoskinson encouraged community engagement for struggling dApps like TapTools. Although he believes it is important for Cardano, the community has responded negatively, and he stated he would take a break from social media and video updates about Cardano.
Technical Analysis: Under Pressure
Selling pressure on Cardano is strong, and the RSI indicates a very strong recent selling trend with an extremely oversold indicator of 27. Low RSI levels usually mean sellers are tired, and a price rebound is coming shortly after.
ADA’s next major support is at $0.152, which is where buyers previously stepped in to support Cardano during its 2021 rally. If this happens again, we may see some a positive price change in the near future.
The first resistance is at $0.20, a psychological resistance level. If the price exceeds $0.20, this may improve the bullish market and indicate that Cardano has reached its local bottom after the recent drop.
