TLDR
- Currently trading around $0.67, Cardano's value has declined 10% in the last week, continuing its downward trajectory.
- The holdings of significant Cardano investors have fallen to their lowest since February 2023, indicating waning investor trust.
- A surge in the Average Directional Index (ADX) to 40.19 has highlighted the powerful bearish momentum currently influencing Cardano.
- Cardano is testing its critical support level at $0.64, and a break below could find its next safety net at $0.58.
- A remarkable 500% increase in weekly investment inflows into Cardano is suggesting a potential rekindling of interest, despite the downturn.
After a recent rally, Cardano is above $0.67, as it attempts to bounce back with a 2.2% gain over the past day, though it struggles against a larger downtrend that has held its price below $1 for weeks.
There has been a 10% price correction for Cardano in the last week, reflecting a longer bearish trend.
Technical analysis reveals a mounting downward force on Cardano, as the ADX has jumped from 15.83 to 40.19, underscoring a growing bearish trend.
The ADX serves as a strong indicator of trend intensity and is reinforcing the notion that the downward pressure on Cardano is gaining strength.
There is concern among Cardano proponents due to declining whale activity, as the number of large wallets holding ADA has decreased.
With whalewallets at their lowest count since February 2023, these large holders appear to be losing faith in Cardano’s near-term performance.
Market Analysis
Price-wise, Cardano sits between resistance at $0.69 and a support level at $0.64, trading at around $0.67, hovering just below its 20-day EMA.
With the RSI in a negative zone, Cardano's current technical posture favors a continuation of bearish trends.
Recently, Cardano challenged its $0.64 support level and managed to hold firm, suggesting active defense by buyers.
Should Cardano break its support on another test, the next support target could be $0.58, reinforcing the prevailing downtrend.
Despite the negative outlook, Cardano isn't without positives, as CoinShares reports a significant 500% weekly uptick in digital asset investment inflows into the cryptocurrency.
This major influx, totaling $0.6 million, signals a potential renewed enthusiasm among investors towards altcoins, including Cardano.
Though there are skeptics regarding Cardano's intrinsic worth, pointing out its 18th rank in TVL with $333 million, juxtaposed with its $23.1 billion market cap, implying a considerable disparity.
This high ratio has led some to label Cardano Some critics label Cardano as overpriced or a 'zombie blockchain,' citing slower ecosystem growth next to rivals like Solana.
Officials from Cardano Foundation argue that their primary focus is on marketing blockchain technology for real-life functions, like identity and record-keeping, over DeFi apps.
Examining Cardano’s daily chart reveals that the price has been in decline since last Wednesday, creating a series of lower highs and dipping slightly past $0.660 support before bouncing back. shows ADA Despite the concerning outlook, some analysts are hopeful that Cardano's future holds growth, aiming for higher price targets by 2025.
Anticipation of Ripple's $RLUSD stablecoin launching on Cardano is bolstering optimistic predictions, as it may bring enhanced liquidity to Cardano, potentially attracting more interest.
Maisie, a seasoned journalist specialized in Crypto & Financial news, writes for various platforms including Moneycheck.com, level-up-casino-app.com, Computing.net, and leads Blockfresh.com as Editor in Chief.
