ADA is down by 30% in the past week alone, but can it get much worse?

In such times of distress, in which the broader crypto market has experienced a sudden and painful decline, Cardano’s co-founder decided to take a break after a short and bitter announcement on X.

Charles Hoskinson’s decision only worsened ADA’s positioning, as the asset tumbled by double digits on Friday and dumped below $0.19 at the time. It kept plunging in the following hours and slumped to under $0.16 later that day, which became its lowest price level since December 2020. The question we asked ChatGPT’s latest version is how low the token can go now.

Consequences for Cardano and ADA

The numbers paint a clear story for ADA. At one point on Friday, it was down by 14% on a 24-hour scale. The weekly losses are up to 30%, while the monthly decline is at 40%. The macro view paints an even more catastrophic picture, with a 75% value reduction in the past year and a whopping 94.7% drop since its all-time high seen in September 2021.

As such, Hoskinson’s move expectedly caused a lot of controversy immediately, with the social media comments exploding. A few praised his decision, others doubted it, and some lashed out.

ChatGPT reassured that Hoskinson has not resigned from Cardano, but the timing matters. His announcement came shortly after the shutdown of major ecosystem participants, the cancellation of Cardano’s flagship summit, and public warnings that additional projects and DeFi applications could disappear before the end of the year.

“The market is treating the move as a vote of no confidence. Whether that interpretation is fair or not is almost irrelevant. Crypto markets are driven by narratives and the current dominant one is that Cardano’s ecosystem is shrinking while competitors continue to attract developers, liquidity, and users,” the AI stated.

So, How Low?

After acknowledging that ADA has already erased years of gains with its drop below $0.17, ChatGPT warned that it could still have room to fall if sentiment continues deteriorating.

Its bearish scenario envisions another leg down, perhaps toward $0.12. If that level cracks, then Cardano’s native asset could be on the way down to even under $0.10. Extreme capitulation sees a decline to $0.08, while the “nuclear scenario” from the AI platform outlined $0.05 as the lowest target.

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“For ADA to trade below five cents, Cardano would likely need to enter a prolonged death spiral involving developer departures, collapsing liquidity, and a broader crypto bear market,” it concluded.