Cardano Price Tests Key Support as Network Activity Weakens

Cardano's price has been stuck in a prolonged descending trend and is currently hovering around $0.175, a crucial juncture that could make or break its chances of reclaiming $0.20.

The network activity has weakened significantly in recent months, with the active address count dropping from 28,459 to 13,800 and transactions falling from 26,000 to 17,400. This divergence between price recovery and activity is a concern for bulls, who need to defend $0.165 support to keep the structure positive.

The Ichimoku Cloud puts immediate resistance at $0.181-$0.182, with a move above this zone potentially bringing $0.20 back into focus. However, a break below $0.165 could weaken the recovery structure and send ADA toward $0.15 or even the $0.137-$0.14 support zone.

The next move will depend on whether buyers can reclaim the Ichimoku resistance and defend the key support level of $0.165. A clean breakout above $0.20 would strengthen the recovery and bring $0.22-$0.23 into view, followed by the $0.24-$0.26 Volume Profile resistance zone.