Cardano Faces Challenges but Shows Signs of Recovery
Cardano’s price stayed flat on Monday, capping a tough month with an 18% drop.ADA traded at $0.565 on June 30, down 34% from its May peak and 57% from its November high.This decline reflects the broader sell-off in altcoins.
Cardano’s ecosystem faced hurdles. The total value locked in its decentralized finance system fell nearly 20% to $315 million. Its stablecoin supply remained at $31.4 million, lower than other chains like Unichain and Near Protocol.
Network activity slowed in June. daily active users dropped to 20,000, the lowest as 2020. Transactions fell to 797,000, down from 2.8 million in December 2023. Despite this, there are positive signs. Whales are accumulating ADA, hinting at a potential price recovery. Wallets holding between 1 million and 10 million ADA now hold 5.51 billion tokens, up from 5.45 billion this month.This could be due to the upcoming Midnight airdrop.
Technical analysis shows mixed signals. The ADA price hit a key support at $0.519. this could be a double-bottom pattern, often leading to a bullish reversal. however, it could also be an inverse cup-and-handle pattern, indicating more downside if it drops below $0.519.
On the bright side, whale activity increased. Wallets with 1 million to 10 million ADA now hold 5.51 billion tokens. This suggests growing expectations for a price recovery.
- Whales are accumulating ADA.
- Transaction activity declined sharply.
- Whales holding 100 million to 1 billion ADA now control 3.25 billion tokens.
Cardano’s price is below the 5-day and 100-day moving averages. A drop below $0.519 will confirm a bearish pattern.
