ADA Price Analysis

• ADA has dropped 23.8% in a week, nearing a key support zone between $0.56 and $0.51.
• Declining whale transactions and network activity suggest investor caution, but a historical rebound pattern could emerge.

Cardano’s [ADA] price performance in recent weeks hasn’t differed from the broader crypto market trends. Although, at press time, ADA remained up by 7.2% over the past two weeks.

However, over the past month, the asset recorded a 10% plunge.

In the last week, Cardano also shows a decline of 23.8%, bringing its price down to $0.716.

Technical Outlook on ADA: Key Levels

From a technical perspective, analyzing ADA’s price chart indicates a consistent decline over the past weeks.

On the 4-Hour chart, ADA’s price faced a major resistance level at the $1.15 region, where it was rejected, confirming this resistance level.

Currently, it seems ADA is set to continue declining until it hits another notable support strong enough to reverse the bearish trend. As of now, the asset has declined as low as $0.71, nearing a major support level between $0.56 and $0.51.

If ADA reaches this support level, there’s potential for a notable bounce upwards. Historically, whenever ADA hits this support, a major reversal tends to occur, allowing ADA to surge above $1.

If this pattern repeats, we could see ADA rally to $1 or higher, depending on its ability to breach the earlier resistance level.

What On-Chain Metrics Suggest

Shifting to the fundamentals and assessing ADA’s key metrics, it appears the asset is in for a long ride.

Firstly, active addresses over a 7-day period have gradually descended this past year. After peaking at over 400k addresses in November 2024, it plunged to around 141k earlier this month. Despite a brief increase to 235k on March 9, it resumed its downtrend, with ADA’s active addresses sitting at 154k as of March 13.

A drop in active addresses often reflects lower transaction demand, indicating reduced investor engagement or weakened network utility, which might influence Cardano’s price movement long-term.

Looking at another major on-chain metric—whale transactions—data shows that this has steadily dropped since late last year. Currently, ADA has 4.73k whale transactions, nearly a 50% decline from over 9k transactions back in December. This drop suggests that major investors are reducing their activity, indicating a potential lack of confidence or shifting investment strategies.