Cardano's ADA is experiencing a downturn today, driven by a combination of diminishing user activity and technical resistance levels. Since early December, Cardano's network has seen a significant drop in user engagement, with daily active addresses and transactions halving. This decline in network activity has been accompanied by a reduction in the Total Value Locked (TVL) in Cardano's DeFi ecosystem, which fell by over 36% in December. These factors indicate reduced user interaction and demand for ADA tokens, contributing to the downward pressure on its price.
Additionally, Cardano faces stiff resistance above the $0.90 level, with a significant number of addresses having previously acquired ADA tokens between $0.91 and $0.93, creating a resistance zone. The broader cryptocurrency market has also been experiencing volatility, with many assets facing downward pressure. This aligns with Cardano's recent price movements, where investor sentiment has been cautious, leading to reduced buying interest and increased selling pressure.
Cardano (ADA) is currently trading at $0.8930, down 5.80% from its previous close of $0.9480.