Cardano Faces Price Pressure Despite Positive Indicators
Cardano’s price has been under pressure this week, reversing some of the gains from last week. the ADA token fell to $0.670, a 10% drop from it’s recent high.
Despite the decline, Cardano is attracting more long-term investors. According to StakingRewards, there was a net increase of 307 million ADA staked, valued at over $215 million. this staking activity suggests a growing interest from long-term investors.
Cardano’s staking ratio now stands at 60.65%, surpassing Ethereum and Tron.
Cardano also boasts other positive metrics. The total value locked in the network has risen to $394 million, with dApps like Minswap and Liqwid leading the way. Daily DEX volume has averaged over $4 million.
A major catalyst for Cardano is the upcoming Bitcoin integration, which will allow BTC holders to earn returns securely. This feature could attract more users to the platform.
However, the technical analysis paints a bearish picture. The ADA price has fallen below the 61.8% Fibonacci retracement level and the 50-day Exponential Moving Average. If the price continues its downward trend,it could reach $0.513, a 24% drop from the current level.A move above the upper boundary of its descending channel would signal a potential reversal.
Key points:
- Cardano’s staking ratio is higher than Ethereum and Tron.
- The total value locked in the network has increased.
