Why is Cardano price down today?

Nancy Lubale3 hours agoWhy is Cardano price down today?ADA price remains in a downtrend as a handful of factors weigh on the altcoin.369 Total viewsListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCardano’s native (ADA) token took on a big portion of the daily losses incurred during the April 10 crypto market rout. 

Data from Cointelegraph Markets Pro and TradingView reveals that the ADA price fell to an intraday low of $0.558 on April 10, down 3% over the last 24 hours.ADA/USD daily chart. Source:TradingView

Let us discuss the factors driving ADA price down today.Weak on-chain metrics underly ADA’s downside

Data from Token Terminal reveals that the drop in ADA price coincides with a modest drop in the token’s trading volume and the number of core developers.

Notably, the number of unique GitHub daily users who made more than one commit to the blockchain’s public GitHub repository reduced from a three-month high of 146 developers on March 6 to 122 on April 10, representing a 16.5% decline.ADA daily trading volume vs. core developers. Source: Token Terminal

Transaction volume was reduced by 80.7% from approximately $2.189 billion to $421 million over the same period.

Additional data from DefiLlama suggests that total value locked (TVL) on the Cardano network plummeted from $473.33 million on March 16 to $371.51 million on April 10.Cardano total value locked, USD. Source: DefiLlama

The decline in trading volume, active core developers, and TVL coincides with ADA’s 27% price drop over the same period, hinting that these metrics have influenced ADA’s short-term price trends—and April 10 is no different.ADA shows weak market structure

From the technical point of view, the ongoing correction in the price of ADA is part of a corrective cycle that started in mid-March after the token hit a two-year high of $0.81.

Traders booked profits as ADA’s relative strength index (RSI) on the daily chart became overbought after crossing 70.

An RSI reading above 70 means the asset is becoming overvalued and may undergo trend reversal or corrective pullback.ADA/USD daily chart. Source: TradingView

ADA is pursuing an extended downtrend, confirmed by its downward movement inside a descending parallel channel. The RSI is positioned at 48, suggesting that the market conditions still favor the downside.

Related:Retail interest in crypto ‘quite low’ compared to last bull run — LunarCrush CEOCardano price faces a difficult recovery

The recent retracement in ADA price showed signs of further weakness after rejection from the descending channel’s upper boundary at $0.61— confirming a stiff barrier around this level. If the bulls fail to flip this level to support, then ADA’s likelihood of continuing its prevailing downtrend will be much higher.

This negative outlook is corroborated by on-chain data from IntoTheBlock. Its In/Out of the Money Around Price (IOMAP) model showed that the channel’s upper boundary at $0.61 sat just above the $0.58 to $0.60 price range, where approximately 2.17 billion ADA were previously bought by roughly 132,970 addresses.Cardano IOMAP chart. Source: IntoTheBlock

This resistance was robust enough to absorb any buying pressure attempting to push the ADA price higher. ADA bulls must flip this zone into support to avoid further losses.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Cryptocurrencies# Altcoin# Dollar# SEC# Markets# Cardano# Tech Analysis# Market Analysis# Altcoin WatchAdd reaction