TLDR
- Currently priced at $0.67, Cardano's value has significantly dropped, marking a 50% decrease from its peak in December.
- From December's $977k to a more modest $316k in March 2025, Cardano's network fees have significantly fallen.
- Application revenue on Cardano has seen a dramatic fall from $400k to a mere $26,000 as of March.
- Technical charts reveal what could be the emergence of a morning star pattern, hinting at upcoming shifts.
- Breaking the $0.73 barrier could lead Cardano on an upward trail towards the $2 mark, as per some expert predictions.
While facing intense ecosystem challenges, Cardano's price holds steady around $0.67, showing preliminary signs of recovery with a morning star pattern on daily charts, possibly signaling a bullish reversal.
Cardano, a third-generation blockchain, has faced a nearly 50% drop since December, mirroring a downturn in on-chain activity and other metrics.
Cardano's network fees have taken a notable dive, sliding to $316,000 in March from $330,000 in February, continuing a trend from December's $977,000 high.
Ecosystem Under Pressure
A staggering 93% plummet in application revenue is noted as Cardano dApps only generated $26,000 in March, in contrast to December's $400,000.
Major applications on Cardano are witnessing substantial capital outflows, with Minswap dropping 20% to $81 million while other protocols see even larger asset reductions.
The distinction between Cardano and its rivals is evident as competing networks like Coinbase's Base earned $20 million, and Sonic reaped more than $200k, surpassing Cardano in March.
Critics argue Cardano's application ecosystem remains underdeveloped compared to other major networks like Solana and BNB Chain, branding it a 'ghost chain'.
Analyzing technical data provides a glimpse into a potential market recovery for Cardano.
Despite facing fundamental hurdles, technical indicators suggest Cardano might be gearing for a rebound with a morning star pattern forming, hinting at a potential reversal.
Meeting strong support at the $0.60 mark, aligning with the 50% Fibonacci retracement, Cardano showcases resilience despite prevailing market uncertainties.
Cardano Cardano now encounters a major resistance around $0.73, matching the 61.8% Fibonacci level and the nearing 200-day EMA, vital for bullish momentum.
Should Cardano surpass this resistance zone, it could target the 78.6% Fibonacci level near $0.92, promising a potential gain of about 37% from current levels.
Examining long-term forecasts and associated risks provides deeper insights into Cardano's potential.
Though immediate hazards exist, some analysts maintain optimism about Cardano's future. Elliott Wave theory aligns current market behavior with a second bearish cycle, potentially paving the way for a bullish phase thereafter.
Reaching $2 remains a possibility for Cardano, aligning with the 38.2% Fibonacci retracement from peak levels, marking a potential 200% growth from where it stands.
However, the risk of falling past the $0.60 support to the next level around $0.53 exists. The looming possibility of a 'death cross' between the 50-day and 200-day EMAs could signal further declines.
Crypto expert Ali Martinez cautions that unless Cardano regains the $0.70-$0.80 range, it risks further downward adjustments to the $0.31-$0.24 range, reflecting a 50% potential dip. Cardano Upcoming days are pivotal for Cardano's trajectory. Breaking past $0.73 could confirm reversal patterns and propel a rally, while failing to hold current supports might prolong the existing decline.
Maisie, a seasoned journalist, delves into the realms of Crypto and Finance, having contributed to Moneycheck.com, level-up-casino-app.com, and Computing.net, and presently leads at Blockfresh.com.
