Foreign media believe that ADA's recent drop to around $0.156 is not just a price decline, but also reflects the continued cooling of market expectations for a Cardano recovery. Compared to the high of nearly $1.30 at the end of 2024, the current price has returned to the area before the start of the previous upward trend, and the previous gains have been largely reversed.
Breaking through multiple support levels
The article states that ADA had previously broken through several support levels, including $0.300, $0.253, and $0.218. Each rebound failed to attract sustained buying, instead attracting more selling pressure, and the market structure shifted from accumulation to distribution.
Currently, ADA is approaching the $0.148 to $0.156 range. The article argues that this area is important because it served as a support zone before the rally that began in 2024. A price return to this level signifies that the market has essentially erased most of the gains from the previous cycle.
On-chain data synchronization fallback
From a technical perspective, the RSI has fallen to 12.09, indicating that short-term selling pressure may be nearing exhaustion. However, the article also points out that oversold conditions do not necessarily equate to a recovery in demand. If buyers fail to hold higher price levels, the market may continue to decline.
The article argues that Cardano's current pressure doesn't solely stem from its price. On-chain fundamentals are also weakening, making a sustained market recovery more difficult.
- TVL has fallen by approximately 75% from its peak at the end of 2024.
- The number of daily transactions decreased by 29%.
- Fee revenue decreased by 45%, to approximately $724,600.
According to the data in the article, Cardano's total locked value is currently around $124 million to $132 million. The article states that this weakness has spread from price to network activity itself. Valuation pressures may persist if on-chain usage and fund inflows do not improve.
$0.218 becomes a key level to watch.
Regarding the future trend, the article believes that a short-term rebound is not impossible, but the more important signal is not the cessation of the decline itself, but whether the price can regain the key area that was previously lost.
The article states that if buying pressure can push ADA back above $0.218 and further recover to around $0.25, it would better indicate that demand is returning to the market. These two levels previously acted as support, and after being broken, they have become resistance.
If ADA fails to recover these price ranges, market attention may remain focused on lower price levels. The article argues that ADA's recovery will depend more on a stronger overall market, improved on-chain activity, or new funds flowing back into the Cardano ecosystem.
