Cardano Price Stuck Below $1: Bearish Trends Persist for ADA

Cardano (ADA) remains stuck in a bearish phase, trading within a narrow range of $0.87 to $1.00. Weak investor sentiment and declining market activity continue to weigh on its recovery prospects, keeping the price below the psychologically important $1 level.

The altcoin’s struggles began after a sharp decline, and its inability to regain momentum has left investors cautious. Daily Active Addresses (DAA), which reflect blockchain activity, highlight diminishing buying pressure, further stalling ADA’s potential rebound.

Declining Market Activity and Bearish Momentum

Cardano’s DAA divergence is currently flashing bearish signals, with fewer participants interacting with its blockchain. This trend is coupled with a sharp decline in whale activity. Specifically, large Cardano transactions exceeding $100,000 have dropped to a six-week low of 5,560 over the last 24 hours, according to IntoTheBlock data.

Such data suggests that significant investors, often critical to driving market movements, are hesitating to re-enter the market. Trading volumes have also stagnated, further pointing to the declining investor interest. Without a broader market shift, ADA risks further depreciation.

Potential ADA Price Scenarios

ADA’s price consolidation highlights a narrow trading range of $0.87 to $1. This reflects fading recovery prospects. Analysts warn that a drop below $0.87 could send the price toward $0.77. This would be a significant loss for current holders.

However, surpassing the $1 threshold could renew confidence. Historically, $1 has been a critical resistance level for Cardano. Breaking it might invalidate the bearish trend. This recovery would require significant buying pressure and market-wide support.

Meanwhile, Cardano is currently trading at $0.9186, a 2.1% increase in the last 24 hours. This has cut its downward trend to 9.9% and 13.9% in the past week and month, respectively. Comparatively, Bitcoin has seen a 4.3% rise in the past day, cutting its weekly loss to 5.5% as it trades at $98,083.