Cardano has been on a steady decline, falling 27% since the start of the month. The altcoin is now trading at a multi-month low, with bearish pressure continuing to weigh on its price action.
Investor confidence has weakened, leading to reduced participation across the network as ADA struggles to regain momentum.
ADA Investors Are Pulling Back
The Cardano network’s active addresses have dropped to a three-month low of 25,600. This is the lowest level recorded since November 2024, reflecting declining investor engagement. The lack of bullish momentum has driven investors to pull back, limiting on-chain activity and reducing transaction volumes.
Since November 2024, the trend has been consistent, with fewer participants interacting with the network. This decline signals weakening demand, which could further contribute to ADA’s struggles.
Until a shift in sentiment occurs, Cardano’s price may continue facing downward pressure.
Despite the ongoing decline, Cardano’s Mean Coin Age has continued to increase since the beginning of the year. This metric tracks how long coins remain in wallets without being moved.
An uptick in Mean Coin Age suggests that long-term holders (LTHs) are accumulating or holding onto their ADA rather than selling.
This behavior is crucial for Cardano’s recovery. If LTHs maintain their positions, they could provide stability and prevent excessive selling pressure. Their continued confidence in ADA’s long-term potential may help limit further losses and support a potential price rebound in the near future.
Cardano Price Prediction: Bouncing Off The Support
Cardano’s price has dropped by 27% this month, currently trading at $0.70. This level is also a crucial support zone for ADA. If the altcoin fails to hold this support, further losses could follow, intensifying bearish momentum.
A break below $0.70 could send Cardano toward $0.62. This would also invalidate the falling wedge pattern, as ADA would slip below the lower trend line of the bullish formation. Such a move could extend investor losses, making recovery more difficult.
However, if long-term holders continue supporting the asset, ADA could bounce off the $0.70 support. A move toward $0.77 would help restore confidence. If this resistance is flipped into support, it would invalidate the bearish outlook and potentially signal the start of a broader recovery.
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