Categories: MarketsMenafn

ADA Price Drops As Network Activity Declines

As user activity on its blockchain and DeFi engagement drop, the Cardano price is under negative pressure. The price is down 6.64% in the last week and 3.9% in the last 24 hours.

Decreasing User Activity and Cardano Price

Since last month, user interaction and the number of new addresses on this blockchain have significantly dropped. Cardano’s total value locked (TVL) declined by 27% in fourteen days.

The TVL of some DeFi initiatives, particularly Splash Protocol and Minswap, also dropped significantly. Splash lost 31% in the past month, and Minswap lost 4.5% in only 24 hours.

This decrease in user activity and TVL affects the demand for Cardano’s ADA, consequently affecting its price.

Performance of Top DeFi Protocols on Cardano. | Source: DefiLlama

ADA Price Action

The ADA price faces critical resistance between $1.07 and $1.10. About 107,710 addresses recently moved, approximately 2.59 billion ADA at an average price of $1.08.

The 20-day simple moving average (SMA) is currently at $1.10, undermining ADA’s rising trend. A technical analyst, Sssebi, noted that the ADA price appears to be consolidating as purchasing pressure increases.

However, the coin is still at risk of further decline unless it breaks above these resistance levels. If ADA fails to flip the $0.97 zone into strong support, it could result in lower lows.

A Further 46% Dip?

Since November 10, ADA has formed an inverted V-shaped pattern on the daily chart, indicating that further dips are possible. If it completes this pattern, the ADA price might fall another 47.6% to the $0.54 zone.

In contrast, breaking above the 20-day SMA around $1.11 might lead to a test of the December high near $1.32. This dip comes amidst the Cardano founder’s (Charles Hoskinson) advocacy for the Foundation to relocate from Switzerland to a jurisdiction where the Cardano community can pick board members.

According to Hoskinson, such a step would enable the community to work with the Foundation on a new structure that promotes transparency and member participation.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Sui Price Analysis: Market Crash Pushes SUI to Critical Support

SUI has faced aggressive selling pressure over the past week, plunging more than 40% from…

13 hours ago

Binance Coin (BNB) Analysis: Bulls Defend $520 But Outlook Remains Fragile

Binance Coin (BNB) is showing signs of strength following a test of the crucial $520…

1 day ago

Ripple to Acquire Prime Broker Hidden Road in $1.25B Deal

Ripple plans to buy prime brokerage firm Hidden Road for $1.25 billion, giving the crypto…

2 days ago

DeflationCoin Launches to Fix Bitcoin’s Flaws with Burn-Based Model and Smart Staking

Dubai, UAE, 7th April 2025, ZEX PR WIRE, DeflationCoin formally launched a groundbreaking cryptocurrency with…

3 days ago

Crescent Petroleum and Dana Gas reach 500 MMboe cumulative production from Khor Mor field, announce major growth and development plans

Sharjah, UAE, 5th April 2025, Dana Gas, the Middle East’s leading publicly listed regional natural gas…

5 days ago

RXR.Lab Launches World’s First Blockchain Crowdfunding-Lottery Platform to Break the System: Lottery, Crowdfunding, and Real Equity in One

RXR.Lab Highlights: The world’s first crowdfunding and lottery platform RXR.Lab will be grand launched on…

7 days ago