- ADA price dropped 6% to $0.57 on Monday, extending a 10% weekly decline.
- Daily active addresses fell from 32,115 in October to 24,280 on Monday.
- ADA long-to-short ratio dropped to 0.75, lowest level in the past month.
Cardano (ADA) fell 6% on Monday, trading below $0.58, extending last week’s 10% decline. The price drop is linked to falling network activity and rising bearish positions in derivatives markets.
At the time of writing, ADA was changing hands at $0.57. The decline occurred after the price was rejected near the $0.70 resistance level. Several on-chain and technical indicators back the bearish sentiment.
Falling Network Activity and Derivatives Data Signal Weak Demand
According to Santiment, Cardano’s Daily Active Addresses dropped to 24,280 on Monday, compared to 32,115 recorded on October 11. The metric has declined steadily since August, indicating a decrease in interest in using the Cardano blockchain.
A drop in daily address activity is typically seen as a sign of weakening network demand. Fewer users are sending transactions or interacting with the network.
Meanwhile, data from CoinGlass showed that the ADA long-to-short ratio fell to 0.75 on Monday. This is the lowest level in one month. A value below one means more traders are betting on ADA’s price to decline than to rise.
Technical Signals Suggest More Downside but Some Recovery Signs Emerge
Momentum indicators continue to point to bearish pressure. The Relative Strength Index (RSI) fell to 32, which is below the neutral 50 mark. This indicates ADA is nearing oversold territory.
The MACD on the daily chart is showing signs of weakening bullish momentum. The histogram bars are shrinking, and the MACD lines are converging, which is often viewed as a bearish signal.
ADA found rejection last week near $0.70 and has since declined sharply. If the downtrend persists, the next support level is expected to be around $0.49.
However, analysts note that large holders have recently moved ADA off exchanges, which may suggest long-term accumulation. Over 100,000 new wallets have also been added in the past 60 days, despite the price decline.
Some chart analysts are tracking a possible double-bottom or an inverted head-and-shoulders pattern forming near the $0.58 level. A breakout above $0.66 could trigger a recovery to the $0.74–$0.80 zone. Still, the short-term outlook remains cautious as the price trades just below the key $0.60 support area.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
