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Cardano (ADA) has been experiencing a downward trend in the past week, with its price dropping 8% to $0.9667 as of writing. Despite earlier optimism surrounding ADA’s potential rally towards the $1.30 resistance, bears have regained control and pushed the cryptocurrency below $1. This development poses significant challenges for long-term holders and investors.
The technical analysis provides an ominous outlook for ADA’s future performance. The daily MACD has crossed over into bearish territory, with its line dipping close to the signal line, hinting at a looming bearish crossover that could perpetuate downward pressure on the asset. Additionally, the RSI has fallen below the neutral 50 level, indicating the overwhelming dominance of sellers and opening the door for more declines if bears maintain their grip.
The $0.91 support level is now under scrutiny as ADA’s price teeters on the edge. A breach of this threshold could trigger a deeper correction, with the next line of defense at $0.76 emerging in the near future. Furthermore, the broader trend is not offering any solace to investors. As noted by analysts, buy volume peaked in December and has been waning since then, forming lower highs – a classic sign of bearish control.
In parallel with this market correction, user activity on the Cardano blockchain has seen a significant decline. Data from Artemis reveals that daily active addresses have plummeted from 96,700 to just 38,200 over the past six weeks, with daily transactions mirroring this trend. The total value locked (TVL) in the network, as reported by DefiLlama, has also experienced a sharp drop of 28.76%, decreasing from $701 million to approximately $499.6 million during this period.
In conclusion, investors are left wondering if ADA can recover and reverse its recent slide or if bears will continue to dictate market conditions.
Source: www.cryptonewsz.com
