Cardano Price Hits Ultimate Support as Active Addresses Plunge

Cardano price has remained in a free fall this month and is underperforming compared to most major coins, including Bitcoin, Ethereum, and Solana. ADA price dropped to a low of $0.400 on Monday, its lowest level since November last year. It has plunged by over 60% from the year-to-date high, a trend that may continue as the number of active addresses plunge.

Cardano Price at Risk as Active Addresses Plunge

Third-party data indicate that Cardano’s network is struggling, as many users capitulate and sell the token. A notable example of this is the decline in the number of active addresses in the network over the past few months.

Data compiled by DeFi Llama shows that the number of active addresses has decreased by 479,111 this month, from 750,964 in the previous month.

The number of addresses stood at over 1.63 million in November last year, indicating a decline of over 70% in this period.

There are several reasons why active Cardano addresses have declined in the past few months. One of them is the fact that the ADA price has been in a free fall, erasing billions of dollars in value.

Another reason is that Cardano’s ecosystem has not grown this year as Charles Hoskinson had predicted. In reality, it has moved in the opposite direction in numerous ways. For example, the amount of stablecoins in Cardano has remained below the $40 million mark, even as the combined amount in the industry jumped to over $300 billion.

Cardano’s DEX trading volume has been in a downward trend this year, primarily due to its meme coin ecosystem’s decline. The network handled $88 million in volume this month, much lower than the December high of $426 million.

Meanwhile, the amount of perpetual D3X volume traded on Cardano stood at $56 million this month, a relatively small amount in an industry that handles billions of dollars each day.

There has been no new DeFi protocol launched on Cardano this year, while the total value locked (TVL) in the network has surged to $186 million from its December high of over $880 million.

Nansen CEO Predicted Cardano Crash

These metrics explain why Nansen’s CEO made a dire ADA prediction last week. In it, he predicted that the the ADA price will continue to fall in the long term, such that it will move out of the top twenty of the biggest coins in the industry by 2026. It will be the first time that Cardano has moved from the top 20 in years.

If this happens, Cardano will join other cryptocurrencies that were once in the top 20 rankings but have since fizzled away over time. The most notable ones were Zilliqa, Internet Computer, Filecoin, and Algorand.

This slow growth also explains why fund managers have avoided Cardano in their filings to the Securities and Exchange Commission (SEC). Only Grayscale has filed for a Cardano ETF. In contrast, a few companies have filed for filings on meme coins like Official Trump (TRUMP) and Dogecoin (DOGE).

Cardano’s developers, led by Charles Hoskinson, are working on key strategies to prevent this crash from happening, but it remains unclear whether these strategies will be effective. They include the upcoming launches such as Midnight and Leios.

ADA Price Technical Analysis

The three-day chart shows that the ADA price has remained under pressure this year. It plunged from last year’s high of $1.3273 in December to the current $0.40. That crash alone has erased billions of dollars in value.

ADA price has moved below the key support level at $0.5097, its lowest level in April and June this year. Moving below that level invalidated the forming triple-bottom pattern, a common bullish reversal sign.

Cardano remains below the 50-day and Exponential Moving Averages (EMA), while the Average Directional Index (ADX) has jumped to 40, its highest level since December last year.

Therefore, the most likely Cardano price prediction is bearish, with the next key support level being at $0.2772, its lowest level in August this year.