Cardano’s [ADA] price performance in recent weeks hasn’t been any different from the ongoing trend seen in the broader crypto market. Although, at press time, ADA still remained up by 7.2% in the past two weeks.
However, on a broader scale such as the past month, the asset has recorded a 10% plunge.
Even when zoomed in to the past week performance, Cardano also still records a decline of 23.8% pushing its price to $0.716, at the time of writing.
Technical outlook on ADA: Key levels
Moving into a technical perspective and analyzing ADA’s price chart, it is quite obvious why the asset has been on a consistent decline over the past weeks.
On the 4-Hour chart time frame, ADA’s price has recently stomped upon a major resistance level at the $1.15 price region.
As ADA got to this price level, it was rejected from that area, once again validating the resistance level.
Given that, the asset was expected to see a major move to the downside until it hits another notable support that is strong enough to reverse the bearish trend.
Looking at the chart, it appears that is what ADA’s price is currently playing out. So far, the asset has declined as low as $0.71 nearing a major support level which sat between $0.56 to $0.51.
Should ADA reach this major support level, there is a possibility of a notable bounce to the upside. Historically, whenever ADA hits this support, a major reversal to the upside occurs with ADA surging above $1.
If ADA gets to the support zone again and history decides to repeat itself, we could see ADA rally to as high as $1 and even more than if it breaches the earlier resistance level.
What on-chain metrics suggest
Now, moving away from the technicals and getting into the fundamentals by assessing some of ADA’s major metrics, it appears the asset is in for a long ride.
First, looking at ADA’s number of active addresses over a 7-day period, data from Santiment shows that this metric has gradually descended in the past year.
Particularly, after peaking at roughly over 400k addresses in November 2024, it has plunged to as low as 141k earlier this month.
Although it later saw an increase to 235k on the 9th of March, however, it seems to have resumed its downtrend with ADA’s active addresses sitting at 154k as of the 13th of March.
A drop in active addresses often reflected lower transaction demand, which could indicate reduced investor engagement or weakened network utility—potentially influencing Cardano’s price movement in the long run.
Furthermore, looking into another Cardano major on-chain metric—whale transactions—data from IntoTheBlock reveals that this metric has steadily dropped from late last year.
As of press time, ADA’s whale transactions sat at just 4.73k transaction—a nearly 50% plunge from the above 9k transaction seen back in December
This decline in large-scale transactions could suggest that major investors are reducing their activity, possibly indicating a lack of confidence or shifting investment strategies.
