1 day ago
1
TLDR
- Cardano (ADA) trading around $0.67, with price correcting 10% over the past week
- Whale holdings dropped to lowest level since February 2023, signaling reduced confidence
- ADX surged to 40.19, confirming a strong bearish trend momentum
- Critical support at $0.64 being tested, with next support at $0.58 if broken
- Investment product inflows increased 500% week-over-week, suggesting possible renewed interest
Cardano (ADA) is currently trading above $0.67 after a slight recovery of 2.2% in the past 24 hours. This small gain comes amid a broader downtrend that has kept the cryptocurrency below the $1 mark for nearly a month.
The price has corrected by 10% over the past week. This continues the longer-term bearish pattern in ADA’s price movement throughout recent market activity.
Technical indicators point to growing downward pressure on Cardano. The Average Directional Index (ADX) has surged to 40.19 from 15.83 just four days ago, confirming that the bearish trend is not only present but gaining strength.
The ADX is a key trend strength indicator that measures momentum regardless of direction. With readings above 40, it shows the current downtrend is powerful and potentially accelerating.
Whale activity has also raised concerns for ADA supporters. The number of wallets holding between 1 million and 10 million ADA has dropped to 2,406, down from 2,421 just a few days ago.
This reduction brings whale holdings to their lowest level since February 2023. The behavior of these large holders often precedes broader market trends, suggesting reduced confidence in ADA’s short-term prospects.
Market Analysis
On the price chart, Cardano is positioned between immediate resistance at $0.69 and important support at $0.64. The cryptocurrency is currently trading at $0.67, with the 20-day EMA hovering around $0.71.
Cardano Price on CoinGeckoThe Relative Strength Index (RSI) remains in negative territory. This technical setup gives a slight advantage to bearish forces in the near term.
ADA recently retested the critical support level at $0.64 and managed to hold. This suggests that buyers are still defending this zone, which has become a major reference point for Cardano’s short-term outlook.
If this support level breaks on another test, it would likely push ADA toward the next support at $0.58. Such a move would indicate a continuation of the current downtrend.
Despite these bearish signals, not all news for Cardano has been negative. A CoinShares analysis shows that Cardano has seen a 500% week-over-week increase in inflows into digital asset investment products.
The total influx amounts to $0.6 million. This represents part of a larger trend of funds returning to altcoins, suggesting possible renewed investor interest in ADA.
Some critics have questioned Cardano’s fundamental value. The project ranks 18th in total value locked (TVL) with nearly $333 million, but its market capitalization stands at $23.1 billion – about 69 times its TVL.
This high ratio has led some to label Cardano as overvalued or even as a “zombie blockchain.” Critics point to the limited ecosystem growth compared to competitors like Solana.
Cardano Foundation executives have countered that the project focuses primarily on marketing the blockchain for real-world applications like identity verification and record-keeping rather than trending DeFi applications.
Looking at the daily chart, the hourly price action shows ADA has been on a downtrend since last Wednesday. The price has made three consecutive lower highs, briefly breaking below $0.660 support before retracing.
Some analysts remain optimistic about Cardano’s future despite the current warnings. There are projections of potential growth, possibly reaching higher price targets by 2025.
The prospect of listing Ripple’s $RLUSD stablecoin on the Cardano network is one factor fueling some optimistic forecasts. This connection could provide the Cardano ecosystem with added liquidity, potentially attracting more investors to ADA.
English (US) ·