Why Cardano Is Going Down: Key Reasons Behind The Selloff

Why Is Cardano Price Down Today: What’s Driving The Red Market?

What’s Driving Cardano Price Down Today?

Cardano is down today due to lowering user activity and stiff overhead resistance. The bears are focussed on driving ADA down to $0.70.

Cardano is weak today, trading at mere $0.80. This is 18.40% lower than what it was before the past 24 hours. ADA may slip even lower in the coming time, as suggested by the weakening technical structure and several onchain signals.

A Look At The Stats

The drop in user activity in the cardano network has been continuing since the start of this month. The number of daily active addresses on the network has dropped from 96,700 to 40,700 within the last 15 days.  

Again, it appears the number of daily transactions has also declined from around 144,300 to 72,500 when the same time period is analyzed.

Furthermore, the total value locked (TVL) on the Cardano network is also trending down this December. It is visible how the TVL fell by more than 36%, reaching approx. $450.82 recently. 

It may be noted here that the drop is not just in the Cardano, but the TVL in DeFi protocols on Cardano has also contracted considerably. If the various leading projects in the DeFi ecosystem of Cardano are being analyzed, the Splash protocol comes out to be one with 53% TVL drop over the last one week. Splash is a decentralized open-source platform. 

All these factors point toward decreasing ADA token demand, thereby impacting the crypto token’s price significantly. 

Stiff Overhead Resistance

Coming to stiff overhead resistance, bears seem to have established resistance of over $0.90 with ADA price trading at $0.80. As per veteran trader Peter Brandt, a ‘crash’ might come if Cardano loses the much required support at $0.80.