Cardano (ADA) has been experiencing a downward trend since Q1 2025, recently testing a critical support level at $0.65. While there's seen a slight rebound, the overall outlook remains uncertain as data indicates growing bearish pressures. According to futures traders on Binance, there’s currently a bullish sentiment, marked by a long-to-short ratio of 2.57. However, recent liquidation data reveals instability with $921.46K in long positions liquidated within the last 24 hours, contrasting with $140.45K in shorts, illustrating a short-term bearish trend in ADA’s price.
The total value locked (TVL) within Cardano's DeFi sector has also seen a decline, now sitting at approximately $318 million. This drop is a concerning signal of dwindling demand for the network, suggesting a slow adoption rate, especially when compared with competitors like Solana and XRP.
Cardano’s growing collaborations and technological advancements are noteworthy as they could enhance its credibility. Some experts posit that Cardano is considered a potential asset among institutions, especially following its inclusion in Trump's crypto reserve announcement in Q1.
Despite some bullish technical indicators, such as ADA finding support within its price chart, onchain metrics are not aligning favorably. Indicators like Network Realized Profit/Loss (NPL) and MVRV 30-day scoring a negative position signify that current holders might be facing losses. Continued pressure on the price can be linked to external market factors, including delays in Grayscale's ADA ETF review.
For traders and investors, this poses a complicated picture. Unless Cardano can stimulate greater adoption and technological advancements, the risk remains that the price could break through the $0.65 support level, leading to a more significant decline. A cautious approach is advised as the broader market sentiment continues to sway.
The total value locked (TVL) within Cardano's DeFi sector has also seen a decline, now sitting at approximately $318 million. This drop is a concerning signal of dwindling demand for the network, suggesting a slow adoption rate, especially when compared with competitors like Solana and XRP.
Cardano’s growing collaborations and technological advancements are noteworthy as they could enhance its credibility. Some experts posit that Cardano is considered a potential asset among institutions, especially following its inclusion in Trump's crypto reserve announcement in Q1.
Despite some bullish technical indicators, such as ADA finding support within its price chart, onchain metrics are not aligning favorably. Indicators like Network Realized Profit/Loss (NPL) and MVRV 30-day scoring a negative position signify that current holders might be facing losses. Continued pressure on the price can be linked to external market factors, including delays in Grayscale's ADA ETF review.
For traders and investors, this poses a complicated picture. Unless Cardano can stimulate greater adoption and technological advancements, the risk remains that the price could break through the $0.65 support level, leading to a more significant decline. A cautious approach is advised as the broader market sentiment continues to sway.
