16 Oct
16Oct

Cardano's native token, ADA, is struggling, having lost nearly a third of its value since late summer, pushing its market outlook into a definitive bearish phase.

Technical and Market Breakdowns

Chart analysts point to a collapse of the coin's multi-month trendline and the formation of lower highs, which are classic signs of a prolonged selloff. The anticipated "death cross"—a negative technical event where short-term moving averages cross below long-term ones—suggests that if the pressure continues, ADA could fall to its previous lows near $0.50, which is about 25% below current levels.

Fading Network Activity and Competition

Unlike past dips, this downturn is compounded by a dramatic slowdown in the network's fundamentals:

  • DeFi Decline: The Total Value Locked (TVL) in Cardano's DeFi ecosystem has dropped by about 20% in the past month to just $288 million. This pales in comparison to competitors like Solana, which has a DeFi sector exceeding $25 billion, highlighting Cardano's inability to compete.
  • Liquidity Evaporation: Daily trading volumes on Cardano's decentralized exchanges have dropped below $4 million, and stablecoin usage is minimal at only $36 million in circulation.

Investor Confidence Deteriorating

Confidence among major holders, or whales, is deteriorating, with data showing that they have offloaded over 350 million ADA tokens in the past week. This exodus of large wallets historically precedes deeper price corrections, especially when paired with dwindling on-chain activity.

Furthermore, key integrations like the Chainlink collaboration and the proposed Bitcoin bridge remain stalled, adding to the market's unease. While founder Charles Hoskinson emphasizes the long-term roadmap, market patience appears to be thinning.

For Cardano to rebound meaningfully, it will need more than a technical recovery; it requires clear evidence of renewed user growth and a solid plan to reassert its relevance in the fast-paced DeFi landscape.

October 2025, Cryptoniteuae

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