Why does the price of Cardano (ADA) continue to fall?

Why does the price of Cardano (ADA) continue to fall?

The price of the cryptocurrency Cardano (ADA) plunged to $0.9225 today, representing a 7% drop over the last 24 hours. This trend does not indicate any early reversal due to several negative factors.

Broader Negative Trend in Cryptocurrencies

ADA's downward price trend is not isolated; the entire crypto market is suffering from a bearish sentiment. Major cryptocurrencies like Bitcoin and Ethereum have also seen losses, with total market capitalization falling 1.73% to $3.25 trillion. This decline is influenced by the hawkish stance of the US Federal Reserve and the expectation that interest rate cuts will not be as swift or significant as previously anticipated.

Weak On-Chain Metrics

Further, it appears that interest in Cardano is declining. Daily trading volume on the decentralized exchange (DEX) has fallen from $31.3 million to $4.9 million, the lowest level since November 2024. Also, the number of active addresses has dropped by 70%, indicating that investors are losing interest.

Technical Analysis

Technical indicators are pointing to a bear flag formation, which may indicate a further decline in price. After breaking the key level of $0.945, the price of ADA may get as low as $0.726, which was the last level seen in mid-November 2024.

Overall, then, there are several factors that suggest the decline in the Cardano price is likely to continue.

*This is not an investment recommendation.

Coingarage Team