Cardano (ADA) is down, dropping below $0.73 with a 25% decline in a month. Weak network activity and bearishness could push it lower.
Cardano (ADA) doesn’t seem to be doing well right now. It just fell below $0.73, down 5.7% from its daily high of $0.77. ADA has dropped by over 25% in the past month, and the downtrend doesn’t appear to be slowing down.
One huge reason? Low network usage. Not as many people are using Cardano’s blockchain, cutting down on demand for ADA. Volume on its decentralized exchanges (DEX) also fell off a cliff, from $31.3 million last December to only $2.7 million today. Active wallets have meanwhile dropped from 113,500 in November to 25,900. Total value locked (TVL) in the system also nearly halved since December.
ADA has also been trailing behind Bitcoin (BTC). While BTC declined just 2.3% last quarter, ADA declined a staggering 32%. The ADA/BTC ratio pumped 193% at the end of last year but has dropped 45% since then, scaring investors.
Looking at the charts, a bearish pattern has just confirmed, and if the sell-off continues, ADA can fall to $0.65 or even $0.45. RSI is showing rising selling pressure, but if ADA can recapture $0.77, it might be able to achieve some stability. Otherwise, more downside could be on the cards.
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