Over the past month, Cardano has seen the highest development activity out of major blockchain networks, surpassing activity on Polkadot and Kusama. Typically, increased development is a positive signal for a project’s growth prospects. However, Cardano’s native ADA token has diverged, posting a nearly 25% price loss amid a risk-off environment in crypto markets.
As of writing, ADA trades around $0.46, having closed below its Supertrend indicator on the 4-hour chart according to analysis. This presents a technical sell signal, with ADA appearing vulnerable to the continued downside. An additional 15% correction could occur if $0.43 support fails, targeting the $0.38 level.
Adding to the bearish outlook, ADA’s Relative Strength Index (RSI) shows an oversold reading of 25, indicating fading upside momentum and lackluster buyer defense. Bulls would want to see RSI recover back above 30 to attempt challenging the psychologically key $0.50 resistance.
In derivatives markets, ADA’s flat funding rates signal that neither leveraged longs nor shorts are currently aggressive, pointing toward likely consolidation or further choppy downside action.
With Cardano developers continuing to push upgrades amid the network activity spike, it remains to be seen whether ADA prices disconnect from product development advances. For now, technicals suggest caution around long exposure despite fundamental project growth. Traders may want to watch for signs of a potential trend reversal as ongoing bear pressure persists.
#Cardano #BlockchainDevelopment #Cryptocurrency
