Cardano Struggles to Rebound Amid Ongoing Price Pressure

Cardano’s (ADA) price is still under pressure, causing worry among traders and investors about its short-term future. Even though new projects are being built on its network, the blockchain has struggled to keep its growth steady.

This has led many to question whether the token can bounce back from its recent losses.

Cardano Price Drop Sparks Concerns Over Network Growth

At the time of writing, ADA is trading at $0.6149, up 1.65% in the past 24 hours, according to CoinMarketCap data. However, the token has dropped 40% since its August high and 53% from its December peak.

For investors, this means a $10,000 investment made in December would now be worth about $4,640. The steady drop in price has sparked talks in the crypto community about what’s holding Cardano back.

A market analyst pointed out six main problems: no native stablecoins, low liquidity, and small total value locked (TVL). Other issues include network congestion, slow on-chain adoption, weak marketing, and poor connection with other blockchains.

All these factors have led to reduced investor confidence and lower activity in Cardano’s decentralized finance (DeFi) space.

Charles Hoskinson Defends Cardano’s Progress and Future Plans

In response to rising criticism, Cardano founder Charles Hoskinson defended the project’s progress and future plans. He said that some of the worries about Cardano’s numbers are not accurate.

Hoskinson explained that while the network’s total value locked (TVL) seems low, it does not include the billions of ADA currently staked. He added that Cardano has around 19,000 daily active users, but this does not count the millions taking part in staking.

He also said that adding stablecoins like Tether (USDT) or USDC would not automatically raise ADA’s price or change its DeFi system. Instead, Cardano’s real strength comes from its strong technology and long-term ecosystem growth.

Hoskinson shared optimism about Midnight, Cardano’s sidechain that focuses on privacy and secure smart contracts. This project aims to make it easier to build advanced decentralized apps (dApps). Hoskinson believes that as Midnight develops, it will help increase Cardano’s TVL, user base, and stablecoin use.

ADA Charts Signal Possible Further Drop Ahead

Despite these positive developments, the charts still show that ADA is in a downtrend. On the daily chart, its price has dropped from $1.0143 in August to around $0.60 now.

A “death cross” has appeared, meaning the 50-day and 200-day moving averages have crossed, usually a sign of weakness. The price is also below the Ichimoku and Supertrend indicators, and a bearish pennant has formed.

This means the price could fall further. If the decline continues, the next support level might be around $0.5060, the lowest point seen in February and April. That would be about a 17.5% drop from the current price.