Cardano (ADA) is experiencing a significant downturn today, driven by a combination of technical and market sentiment factors. The cryptocurrency has been unable to maintain its position above the crucial $1 support level, leading to a bearish outlook. Technical indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are signaling bearish momentum, with the MACD showing a bearish crossover and the RSI dropping below its neutral level. This suggests a continuation of the decline, with the potential for ADA to test lower support levels around $0.74 if the bearish trend persists.
Additionally, on-chain data reveals a substantial drop in Cardano's total supply in profit, with a decrease of 3.55 billion ADA over the past week. This indicates increased selling pressure as more investors are holding ADA at a loss. The decline in daily unique addresses completing transactions on the Cardano network, which has fallen by 81%, further exacerbates the situation by reflecting reduced user engagement and network utilization. This decline in activity has weakened demand for ADA, contributing to the downward pressure on its price.
Cardano (ADA) is currently trading at $0.9220, down 4.78% from its previous close of $0.9683.