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Key Insights:
- Cardano’s active users dropped 63% in 2025, from 54,400 to 20,000.
- ADA price may face a 50% drop, with a potential target of $0.18.
- The asset’s futures market open interest plummeted by $678 million.
Cardano price has recently been showing concerning signs of a potential downward move. Currently trading at $0.584, ADA has formed a rare inverse cup-and-handle pattern and a death cross. This suggested the possibility of a further decline.
Technical indicators signal a possible price decline for ADA. Active user numbers and futures market activity are both falling. Projections suggest the Cardano price could drop to around $0.18.
Further Downside for Cardano Price?
Cardano’s network has been facing significant challenges in 2025, especially for a project valued at over $20 Billion. Artemis data shows a sharp decline in Cardano’s daily active users.
In June, the number dropped to 20,000 from 54,400 last year. This marks a consistent decline in user engagement over several months.
Cardano’s transaction volume dropped to 619,000 in June. That’s the lowest in over a year, down from a peak of 2.8 million in November 2024. This sharp decline in activity reflects reduced network engagement.
However, in comparison, Solana has seen over 2 billion transactions in the past 30 days. Moreover, Cardano’s chain fees have dropped to just $146,000 in the last 30 days. It’s a substantial decrease from $978,000 in December 2024.
Solana’s fees were over $26 Million during the same period, highlighting Cardano’s struggles. These metrics suggest that ADA is struggling to maintain momentum in the market. This could further impact the Cardano price.
Cardano Price Will Continue to Fall
Cardano’s futures market activity shows signs of bearish sentiment, with a significant decline in open interest. From a peak of $1.5 Billion in early 2025, open interest has dropped by over $678 Million.
This suggests that traders are reducing their positions in anticipation of further price declines. This decrease in open interest indicates fewer traders are willing to take long positions. It reinforces Cardano’s overall pessimistic outlook.
The price of ADA has also faced notable fluctuations, with a decline from early 2024 highs, currently trading around $0.60. During this period, there was a sharp rise in open interest.
This reflects market optimism. However, the subsequent decline in both open interest and price points points to a loss of momentum.
As of June 2025, the flat open interest suggests caution in the market, with traders uncertain about the future direction. Cardano price and open interest are moving in opposite directions.
This divergence may signal a continued bearish trend. However, a sudden price jump could trigger a short squeeze.
Cardano Price Faces 50% Downside Risk
Cardano price is forming a bearish trend since the price is at $0.57980, and today, it has dropped by 1.36%. The price movement has been volatile, whereby red and green candles alternated. This indicates the divergence in the market opinion.
The concern is that Cardano has created an inverse cup and handle pattern. This usually indicates a substantial decline following the consolidation.
Its critical support level is at $0.519; a breakdown at this mark can pull the price to $0.179. This shows a possible 50% loss relative to the current price.
The MACD indicator confirms the bearish condition; the MACD line, -0.03247, is below the signal line 0.03497. Moreover, RSI has reached 37.25, which indicates a dive, yet it cannot be assumed that a reversal will occur.
Cardano price could push support levels to $0.58. If it passes, Cardano might have a future rebound to $0.60.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
