Cardano’s price has fallen 27% this month, hitting a multi-month low. With investor confidence fading, can ADA find support and bounce back?
Cardano Faces Continued Selling Pressure
Cardano (ADA) has been on a steady decline, dropping 27% since the start of the month. The altcoin is now struggling under bearish momentum, with reduced investor participation adding to the downside pressure.
On-chain data shows a decline in active addresses, signaling weakened confidence. If this trend continues, ADA may struggle to regain momentum in the near term.
Investors Are Pulling Back on Cardano
🔻 Network Activity Declines:
The number of active addresses on the Cardano network has dropped to 25,600, marking a three-month low. This is the lowest since November 2024, reflecting a decline in engagement.
⚠️ Weaker Demand Hurts Price Action:
Investor hesitation has led to lower transaction volumes and reduced on-chain activity. As a result, ADA remains under pressure. Without a shift in sentiment, further downside could follow.
Long-Term Holders Show Confidence
Despite the price drop, Cardano’s Mean Coin Age continues to rise. This metric tracks how long coins stay in wallets without moving. An increase suggests long-term holders (LTHs) are accumulating ADA rather than selling.
💡 Why This Matters:
✔ LTHs can help stabilize the market by reducing selling pressure.
✔ If confidence remains strong, ADA may find support and recover.
✔ Their behavior could play a crucial role in limiting further losses.
Cardano Price Prediction: Can ADA Hold Support?
📌 Current Price: $0.70 – a critical support level.
📉 Bearish Scenario: If ADA drops below $0.70, further losses could push the price down to $0.62. This move would invalidate the falling wedge pattern, making recovery more difficult.
🚀 Bullish Scenario: If ADA holds $0.70 and bounces back, a push toward $0.77 could restore confidence. Breaking this resistance may signal the start of a recovery.
The coming days will be crucial in determining whether Cardano can stabilize or extend its decline.
Key Takeaways
✔ Cardano is down 27% this month, trading near $0.70 support.
✔ Active addresses have hit a three-month low, signaling weak demand.
✔ Long-term holders are accumulating, which may help stabilize price action.
✔ A drop below $0.70 could lead to more losses, while a rebound could trigger recovery.
