Why Cardano Price Dropped Today?
Cardano (ADA) is currently at $0.898, down 8% in the last 24 hours. Some of the factors that have contributed to the drop include:
1. Declining Network Activity**
- The number of daily active addresses on the Cardano network dropped from 96,700 on December 3 to around 40,700 on December 18.
- Daily transactions also dropped from around 144,300 to 72,500 in the same period.
2. Declining Total Value Locked (TVL)**
- Cardano’s TVL has dropped by over 36% from around $708.9 million to around $450.82 million.
- Leading DeFi protocols on Cardano, such as Splash, have seen their TVL drop by 53% in the past week.
3. Strong Resistance Above $0.90**
- Currently, ADA price is trading around $0.88, with strong resistance in the range of $0.91 to $0.93, where more than 59,150 addresses hold around 1.12 billion ADA.
- If the price fails to maintain the $0.91 level, analysts predict a possible retest at the $0.80 level.
Conclusion
The decline in network activity and TVL, coupled with significant price resistance, suggests that ADA is facing serious challenges that could affect its price further. As always, it is important for investors to do their own research before making any decisions.
