Cardano (ADA) Price Falls 5% as Trader Sentiment Turns Bearish
Cardano (ADA) experienced a decline of over 5%, trading around $0.57, following a 10% drop last week.
- Market sentiment is bearish, with a long-to-short ratio of 0.75, as per CoinGlass.
- On-chain data shows a decrease in daily active addresses from 32,115 to 24,280 between mid-October and November 3.
- Technical indicators: RSI at 32 indicates bearish conditions; MACD histogram signals reduced bullish momentum.
- A decline below $0.55 could lead to corrections toward the $0.49 support level.
Charles Hoskinson on DeFi Challenges
- Hoskinson highlights coordination issues within the Cardano community affecting DeFi participation.
- Current TVL is $271 million, lagging behind Ethereum's $85 billion and Solana's $11 billion.
- Despite staking by over 1.3 million ADA holders, DeFi app engagement remains low.
Potential for Cardano's DeFi Growth
- Cardano shows strong development activity, surpassing Ethereum and Solana recently.
- Projects like Midnight and RealFi aim to connect Cardano with Bitcoin liquidity and real-world lending markets.
- Institutional accumulation is evident, with 37.5 million ADA moved from Coinbase to private wallets, indicating long-term confidence.