Cardano remained under pressure and dropped below key support levels as the crypto sell-off continued.
Cardano (ADA) token dropped to a low of $0.70 on Sunday, down by over 47% from its highest level in December last year.
Its decline has mirrored that of other altcoins. For example, Polkadot (DOT) dropped to $4.75, down by over 60% from its highest level in December. Similarly, Chainlink (LINK) has fallen by 40% from its December highs.
Cardano’s crash also occurred when a sense of fear had spread in the crypto industry. The closely watched crypto fear and greed index has dropped to the fear zone of 35, a sign that investors are staying on the sidelines.
Cardano’s ecosystem is also not doing well. DeFi Llama data shows that the total value locked in its DeFi ecosystem has dropped to $350 million, making it smaller than blockchain networks like Mantle, Cronos, Zircuit, and Berachain.
Notably, Cardano has a small market share in the stablecoin industry, as its market cap has moved to $22.48 million. That is significantly smaller than the market share of other chains like Tron, Ethereum, and Near Protocol.
Cardano’s network is also not making enough money. Data shows that the ecosystem’s app revenue was just $1,236, a small figure for a crypto network valued at over $30 billion. Cardano has just 25,460 active addresses.
Cardano forecast
The daily chart shows that the ADA price has remained under pressure in the past few months, moving from $1.3268 in November to $0.70 today. It has dropped below important support levels, including the 50% Fibonacci Retracement point at $0.80.
Cardano has also dropped below the 200-day moving average at $0.7230. Losing the 200EMA level is often seen as a big red flag in technical analysis. Also, the coin has moved below the key support at $0.7610, the lowest swing in December and the neckline of the double-top at $1.1630. A double-top is a highly popular bearish reversal sign.
Therefore, Cardano’s price may remain under pressure, with the next point to watch being last week’s low of $0.5597. Such a move would be a 20% crash from the current level.
The bearish view will become invalid if the price moves above the resistance point at $0.7610.
