Cardano price has remained under pressure as the network’s challenges continued. ADA was trading at $0.3112, which was slightly above the year-to-date low of $0.30. It has plunged by more than 90% from its all-time high.
Cardano has been selling off recently as challenges that have existed its ecosystem continues. For a chain like Cardano, its success is usually determined by the level of activities in its network. This means the volume of NFT sales, DeFi transactions, and activity in its metaverse.
A closer look at key parts of its ecosystem shows that challenges remain. For example, according to DeFi Llama, the total value locked (TVL) in its DeFi ecosystem has continued dropping. After peaking at $434 million early this year, the TVL has collapsed to about $76 million.
Most DeFi platforms in Cardano, including Meld, Minswap, Indigo, and WingRiders have seen assets decline. A likely reason for this performance is that DEX users have been inclined to use mainstream products like GMX and Uniswap.
Meanwhile, data compiled by CryptoSlam shows that the volume of Cardano NFTs has been in a downward trend. In December, it has handled just $3 million worth of coins. In comparison, embattled Solana handled NFTs worth over $1 million in the past 24 hours.
In November, Cardano NFTs handled NFTs worth just $8 million, down from the previous $23 million. At its peak, Cardano handled volume worth $62 million in April. Other metrics, including buyers and sellers, show that the situation is getting worse.
Therefore, fundamentally, there is evidence that Cardano’s ecosystem is not growing as fast as the developers were expecting. As such, it faces an uphill battle to compete with the likes of Arbitrum and Ethereum.
The daily chart shows that ADA price has been in a bearish trend in the past few months. It managed to move below the important support level at $0.3883, which was the lowest level on May 12. It was also the lower side of the descending triangle pattern shown in black.
Cardano has moved below all moving averages while the Relative Stength Index (RSI) has moved to the neutral point at 40. Therefore, I suspect that ADA crypto price will continue falling in the coming days as enthusiasm about cryptocurrencies slip. The next key catalyst for the coin will be the upcoming Fed decision.
