Kadena price prediction after KDA’s 37% crash

The Kadena (KDA/USD) price sell-off accelerated on Monday morning as the cryptocurrency sell-off continued. It is trading at $6.68, which is about 37% below the highest level last week. The coin is also trading at the lowest level since February 7th.

Is Kadena a ghost chain?

Kadena is a blockchain project that became well-known in 2021 as investors moved to Ethereum-killers. They were attracted to the coin by its promise of fast speeds and lower costs. 

While Ethereum handles less than 30 transactions per second (TPS), Kadena is able to handle over 480,000 transactions in the same period. 

Therefore, Kadena hopes to be the fastest platform in the world. Indeed, Visa, a platform that is used by millions of people every day can handle less than 5,000 transactions per second.

However, while faster speeds are good, Kadena has not been embraced by most developers. While there are several projects built using Kadena, none of them have gone mainstream. Instead, the most popular DeFi projects are built using other mainstream platforms like Ethereum, Terra, Avalanche, and Solana.

The Kadena price is also falling because of the overall performance of cryptocurrencies. Indeed, Bitcoin has fallen from last week’s high of over $44,000 to about $42,000. The total market capitalization of all cryptocurrencies has declined from more than $2 trillion last week to about $1.8 trillion. 

This performance is mostly because of the rising geopolitical fears as tensions between the US and Russia escalate. Indeed, in the past few days, other assets like stocks have fallen while bond yields have jumped.

Another reason why the Kadena price is retreating is that the rising inflation pressures are providing hints that the Fed will embrace a hawkish tone. Historically, risky assets like Cardano tend to underperform in periods of high-interest rates.

Kadena price prediction

The four-hour chart shows that the KDA price has been in a bearish trend in the past few days. The coin has declined by about 37% from the highest level last week. Along the way, it has fallen below the 25-day and 50-day moving averages. 

At the same time, oscillators like the MACD and the Stochastic have moved lower. Therefore, there is a likelihood that the Kadena price will keep falling as bears target the next key support at $6.

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