Cardano Faces Bearish Pressure as Activity Slows Down
Cardano (ADA) is experiencing a local bear market, with its price dipping to $0.668. This represents a 22% drop from its May peak. The coin is now at its lowest since May 6.
On-chain data suggests further price declines may be on the horizon. According to santiment, the social dominance score has fallen to 0.792%, down from 1.8% in May. This indicates reduced social media buzz on platforms like X and Reddit. Fewer people are talking about it.
Network activity is also declining. Daily active addresses have dropped to 21,565, a important fall from over 60,500 in May. This decline in user engagement is a worrying sign. The mean dollar invested age (MDIA) has also dropped sharply.
The network’s realized profit/loss is now negative, showing that investors are selling at a loss. The Market Value to Realized Value (MVRV) ratio is also negative, suggesting Cardano might be undervalued. However, the MVRV of -0.019 is higher than in April when the coin rebounded.
cardano’s decentralized finance ecosystem is also underperforming. The total value locked has fallen to $387 million, and stablecoin supply is just $30 million. This is lower than newer projects like Sonic and unichain.
Technically, Cardano’s price has broken below key support levels. It formed a double-top pattern and is now below the 50-day and 200-day Weighted Moving Averages. The next key support is at $0.513, a 23% drop from current levels.
