Cardano (ADA) has been experiencing a downward trend in recent weeks, with Sunday marking its fifth consecutive week of decline. The cryptocurrency, which has been part of a major bull run since October 2023, has seen its price drop below significant support levels, recently falling below the $0.4 mark, previously considered strong support. In the past week, crypto assets have dropped by almost 7%, with only 25% of traders being profitable, according to data from IntoTheBlock.
Investor sentiment has been dampened by dwindling trading volumes and persistent selling pressure, contributing to ADA’s current position below key moving averages. Crypto analytics platform Santiment identified ADA as one of the most heavily shorted altcoins alongside XRP following relief bounces. However, analysts remain optimistic, noting that liquidated shorts can act as “rocket fuel” for continued price increases.
The Cardano community is eagerly anticipating the upcoming Chang Hard Fork scheduled for this quarter, touted as the largest upgrade since Vasil in September 2022. The upgrade promises to introduce community governance features, including the implementation of a “Cardano Constitution” and mechanisms for ADA holders to participate in governance through voting. Cardano recently published its Interim Constitution, which will guide the Interim Constitutional Committee (ICC) during the technical bootstrapping phase of the Chang hard fork.
Some analysts, like “Fiery Trading,” have identified a potential rising channel on the weekly chart, expressing optimism about a possible new cycle that could propel ADA towards $45 or higher within the channel in the next bull season. On the other hand, analysts like “Swallow Premium” predict further downside, identifying $0.2465 as a critical support level following ADA’s failure to consolidate above the $0.40 “local liquidity” level.
Data from IntoTheBlock indicates that ADA is anchored in a robust support zone between $0.37 and $0.30, where approximately 568,000 addresses hold 3.15 billion ADA, valued at around $1.3 billion. Maintaining this support level will be crucial for ADA to sustain upward momentum and potentially recover from its recent price declines. ADA traded at 0.3874 at press time, reflecting a 0.002% loss over the past 24 hours.
