Cardano Price Eyes 15% Drop as ADA Loses Ground
Cardano's (ADA) price has been on a downward trend after experiencing a 6% decline in the previous day, breaking below a crucial support level of $0.1900 at press time on Wednesday.
A close look at the Cardano ecosystem reveals a decline in transaction count and Real Economic Value (REV), indicating waning user demand. Blockworks data shows that the Cardano ecosystem experienced a significant drop in transaction count, from 40,063 on August 21 to 18,334 on Monday, resulting in lower revenue collection.
The reduced activity translates to lower intrinsic demand for the ADA token, suggesting that Cardano is struggling to gain market share among layer-1 blockchains. On the derivatives side, metrics show sell-side dominance, with CoinGlass data indicating a wipeout of bullish positions due to $2.77 million in long liquidations over the last 24 hours.
Technical analysis suggests that Cardano's downside breakout eyes $0.16, with the next support band emerging at the 23.6% Fibonacci retracement level of $0.1647, indicating a 15% downside risk from the current market price.