Cardano (ADA) Analysis: Bearish Cycle and Decreasing User Activity
Cardano (ADA) is currently facing an inflection point as bulls and bears battle for control. The price of ADA remains relatively unchanged over the last 24 hours, but it has experienced significant losses over longer timeframes. Here are the key points:
- The total value locked (TVL) on the Cardano blockchain has been decreasing, falling by 23% in the last month. This decline is attributed to Base overtaking Cardano’s TVL.
- User activity on Cardano has also declined, with a drop in daily active addresses (DAAs) and daily transactions.
- These on-chain metrics tend to be directly correlated with price activity, suggesting that the declining user activity may lead to further price drops.
- The current ADA price analysis shows the coin fighting to stay within a V-shaped recovery chart pattern, with support at $0.259.
- However, the position of the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) indicates that market conditions favor the downside.
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