Cardano’s price is experiencing significant selling pressure, reflecting a troubling trend of diminishing trader activity and momentum. The cryptocurrency, known by its ticker symbol ADA, has struggled to regain critical price levels, raising concerns about its future performance. As the broader crypto market balances between cautious optimism and bearish sentiment, Cardano’s stagnant price action has caught the attention of investors.
Many traders are moving away from ADA, which recently hovered around $0.38–$0.39, following a notable decline from nearly $1 in mid-2025. With bearish technical indicators on the rise, the risk of ADA drifting back toward earlier support levels increases if buying interest does not return. Bitcoin is facing challenges in maintaining its recent gains, while Ethereum is contending to stay above the $3,200 mark. In stark contrast, Cardano’s price has not seen a significant recovery, even as overall market volatility drops below 50.
Declining Participation and On-Chain Activity
The downturn for Cardano began in early October 2025, although signs of weakening momentum were evident well before this period. Data from DeFiLlama reveals a significant decline in Cardano’s on-chain activity. The number of active addresses fell from over 26,000 in the first week of January to approximately 15,000 recently. Additionally, decentralized exchange (DEX) trading volume has plummeted from around $7.42 million to lows of $1.66 million.
Despite a relatively stable Total Value Locked (TVL), the diminishing activity among addresses and trading volume indicates a shift in market focus away from Cardano. As many cryptocurrencies like Bitcoin and Ethereum attempt to stabilize, ADA has struggled to attract sustained buying interest. The price action shows a consolidation phase following a rebound, but the lack of follow-through raises concerns.
Market Trends and Future Speculations
As January progresses, traders are observing whether Cardano can maintain a short-term rebound or revert to its prevailing downtrend. The 4-hour chart illustrates ADA compressing within a descending triangle pattern, characterized by lower highs capped by a falling trendline. Support is currently holding in the $0.38–$0.39 range. The tightening Bollinger Bands indicate that a significant price movement could occur soon.
A bullish breakout above the $0.41–$0.42 range could pave the way for upward momentum toward $0.45 and $0.48 this month. Conversely, a breakdown below $0.38 may lead to a decline toward $0.35 or lower, perpetuating the existing bearish trend.
At present, Cardano is not positioned to reach the $1 mark. It remains below critical resistance levels, with weak buying interest continuing to hamper any potential recovery. The drop in on-chain activity and trading volume suggests that traders are not actively engaged in supporting an upward movement. While short-term price bounces may occur, they appear more as temporary recoveries rather than indications of a strong rally.
For Cardano to achieve a significant price recovery, a clear trend reversal alongside enhanced trader participation is crucial. At this point, both elements are noticeably absent, casting uncertainty over Cardano’s immediate future in the cryptocurrency market.
