Cardano’s Price Under Pressure Amid Crypto Sell-Off

Cardano’s token has faced significant pressure, dropping below key support levels as the crypto sell-off continues. The token’s price hit a low of $0.70 on Sunday, marking a decline of over 47% from its highest level in December last year.

Altcoins Mirror Cardano’s Decline

Cardano’s decline is not an isolated incident, as other altcoins have also experienced significant drops. For instance, Polkadot has fallen to $4.75, down by over 60% from its highest level in December, while Chainlink has declined by 40% from its December highs.

Crypto Fear and Greed Index Points to Investor Caution

The crypto fear and greed index has dropped to the fear zone of 35, indicating that investors are exercising caution. This fear has contributed to Cardano’s crash, as investors remain on the sidelines.

Cardano’s Ecosystem Struggles

According to DeFi Llama data, the total value locked in Cardano’s DeFi ecosystem has dropped to $350 million, making it smaller than blockchain networks like Mantle, Cronos, Zircuit, and Berachain. Additionally, Cardano’s market share in the stablecoin industry is relatively small, with a market cap of $22.48 million, significantly lower than the market share of other chains like Tron, Ethereum, and Near Protocol.

Revenue and Active Addresses Raise Concerns

Data shows that Cardano’s ecosystem app revenue is a mere $1,236, a small figure for a crypto network valued at over $30 billion. Furthermore, Cardano has only 25,460 active addresses, raising concerns about the network’s adoption and usage.

Cardano Forecast: Bearish Outlook

The daily chart indicates that the ADA price has remained under pressure in the past few months, moving from $1.3268 in November to $0.70 today. The token has dropped below important support levels, including the 50% Fibonacci Retracement point at $0.80 and the 200-day moving average at $0.7230.

Cardano has also 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, which may lead to further price declines.

Based on this analysis, 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 represent a 20% crash from the current level. However, if the price moves above the resistance point at $0.7610, the bearish view will become invalid.

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