Cardano’s Weak Interest Tilts Toward Market Correction

The Cardano network's active addresses are rapidly declining, which affirms investors' growing doubts about ADA's ability to recover.

Olumide Adesina•Monday, December 30, 2024•1 min read

The Cardano network’s active addresses are rapidly declining, which affirms investors’ growing doubts about ADA’s ability to recover.

Cardano is now trading at $0.87, just above the critical $0.85 support level. If ADA is to regain its upward momentum and target the $1.00 mark—a significant psychological and technical barrier—it is imperative that this support be maintained. The first step in starting a recovery is flipping $1.00 into support.

Reduced activity suggests that many traders are withdrawing from the market, which leaves the altcoin with less liquidity, so this drop in participation is a worrying sign.

The token will likely have a tough task recovering from its current levels as liquidity falls. Short-term traders’ lack of activity reveals the hesitancy of the larger market, which makes a short-term recovery to key price points more difficult.

Reaching this milestone could help ADA start to recover its recent losses. Its goal is to regain a stronger position in the market by hitting $1.25. Restoring investor confidence at this level would be a major step.

However, Cardano’s price trajectory might suffer significantly if the $0.80 support is lost. The bullish outlook would be invalidated by a decline to $0.75 or less, which might prolong losses and increase investor skepticism. It’s critical to stay above this support to prevent a protracted decline.

Meanwhile, Charles Hoskinson, the founder of Cardano (ADA), believes that by 2025, Input Output’s Lace lightweight wallet will be a “driving force” in the ecosystem. This occurs as users switch to Lace from the well-liked Nami wallet.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.