Altcoins News

Story: Cardano’s Recovery Looks Unlikely in Near Term as Selling Pressure Mounts

By Julie Binoche

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Cardano (ADA) has struggled to recover despite a strong performance during Bitcoin’s recent rally.

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Key indicators reveal that investor sentiment toward Cardano remains cautious. On-chain metrics from Santiment show that although daily active addresses have held steady, the…

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Another major concern is Cardano’s MVRV ratio, which has remained positive for almost two months.

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The mean coin age metric also supports a bearish view. This indicator, which tracks how long tokens have remained in wallets without moving, has been declining steadily.

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From a technical analysis standpoint, Cardano’s daily chart presents further evidence of weakness. On May 30, the market structure turned bearish when ADA fell below the $0.

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Despite the possibility of a short-term price range developing, such a formation is not in itself a reliable sign of recovery.

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There are several major obstacles standing in the way of a Cardano recovery. First, declining developer engagement poses a serious issue.

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For Cardano to bounce back, several things need to happen. Developer activity must pick up, bringing new features and energy into the ecosystem.

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In conclusion, while Cardano showed strength during Bitcoin’s rally earlier this year, the underlying data points to a network under pressure.

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