- Cardano (ADA) is facing significant price struggles due to underutilized technology, with current transaction rates at just 0.41 TPS, raising concerns among investors.
- Analysts predict a potential decline of 10% in the coming days as ADA contends with strong resistance levels and bearish market sentiment.
Cardano (ADA) is currently facing significant price struggles, drawing the attention of analysts who highlight a key issue: the technology is underutilized. An analyst recently pointed out that with Cardano’s transaction per second (TPS) currently at a mere 0.41, it raises concerns about its adoption and usage. The analyst stated, “Investing in unused technology in 2024 is not a smart move,” emphasizing that without active users, ADA’s potential remains largely untapped.
Market Trends and Resistance Levels
The broader cryptocurrency market is experiencing a correction, with major players like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) seeing price dips after a recent surge. This overall bearish trend compounds the struggles faced by Cardano. Historical price momentum indicates a looming possibility of a further decline, with predictions suggesting ADA could drop by 10% in the coming days, potentially hitting the $0.325 mark.
Currently, ADA is contending with a strong resistance level at $0.36, where it has faced selling pressure in the past. A similar scenario unfolded on September 4, when ADA fell nearly 10% in just three days after hitting this resistance. Analysts suggest that for any bullish sentiment to return, ADA must close its daily candle above $0.365.
Technical Analysis Signals
Technical indicators paint a bearish picture for Cardano. It is currently trading below the 200 Exponential Moving Average (EMA), a crucial metric traders often look to for trend direction. This downtrend signals a lack of confidence in ADA’s price action, as it continues to struggle against key resistance levels.
The on-chain metrics further support this negative outlook. The ADA Long/Short ratio stands at 0.926, indicating a bearish sentiment among traders. Additionally, the future open interest has declined by 3.8% in the last 24 hours, suggesting that traders are either liquidating their positions or hesitant to enter new ones.
Market Participation Declines
At press time, ADA is trading around $0.352, reflecting a modest decline of 0.8% in the past 24 hours. Trading volume has also dropped by 18%, indicating reduced participation amid ongoing selling pressure. This lack of activity can further exacerbate price struggles, making it difficult for ADA to find upward momentum.
Cardano’s current challenges stem from a combination of underutilized technology, market trends, and bearish technical signals. Unless there is a significant shift in adoption and market sentiment, ADA may continue to face hurdles in its price recovery.
