Over the past seven days, the digital currency Cardano (ADA) has experienced an 18% price drop, aligning with the overall downward trend of the market. Alongside the price decrease, activities on the Cardano network have significantly declined, raising concerns about the short-term performance of this altcoin. The price of Cardano reached $1.22 on December 8th but has now dropped to $0.88. According to the In/Out of the Money Around Price (IOMAP) data, the major resistance for Cardano is at the $0.92 level. Approximately 58,470 addresses are holding a total of 951.02 million ADA tokens at this level, creating a significant resistance barrier. In the current situation, if buying pressure remains low, crossing the upcoming resistances for Cardano will be challenging, with a possibility of further price correction. Sentiment data from Santiment also supports these sentiments, indicating a notable decrease in Cardano network activity. The number of active addresses in the network was over 51,000 on December 16th, but has now decreased to 32,700. This decline in activity reflects reduced user interaction with the blockchain and a bearish sentiment towards ADA. From a technical perspective, the Exponential Moving Average (EMA) also signals a continuation of the downward trend. The Cardano price is currently below the EMA-20 and close to the EMA-50, indicating weakness in the upward trend and a potential price decline continuation. If this situation persists, the Cardano price may drop to $0.77 and in a more bearish scenario, even to $0.55. However, if network activity increases and user confidence returns, there is a possibility of a trend reversal and price increase to $1.33. You can monitor the prices of all tokens and cryptocurrencies live on the Momentary Price page of digital currencies.
