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    Why is Cardano price down today?

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    30s Summary

    Cardano (ADA) saw a 7.4% drop over the past three days, erasing last week’s gains and sinking to $0.338 on Oct. 25. This follows a poor annual performance, with ADA falling 43% compared to Bitcoin’s 52% rise. A key reason is the falling activity on the ADA network, with active addresses decreasing from 71,270 to 25,680 since March, and new wallet addresses dropping from 24,860 to 5,920. The total value locked in Cardano has also shrunk by over half, impacting projects within the Cardano ecosystem like Indigo and Minswap. ADA’s decline also reflects an increasing divergence with the relative strength index.

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    Cardano (ADA) hasn’t been doing too well this week, falling by 7.4% over the last three days and hitting a price of $0.338 on Oct. 25. This dip in price means all the progress it made on Sunday, Oct. 20, has been basically wiped out. Looks like folks aren’t as keen on the ADA token right now, as it’s gone down another 2.3% in just 24 hours.

    Looks like ADA isn’t alone in having a rough week though. Ether (ETH), a really big altcoin, has also slipped by around 2% in the last 24 hours. And Avalanche (AVAX) isn’t faring much better, dropping by 2.7%.

    So, what’s bringing ADA’s price down today?

    ADA’s got the blues right now and part of that is because it hasn’t been doing as well as Bitcoin (BTC) this year. BTC has soared by about 52% in 2024, while ADA has gone in the other direction, sinking by 43%.

    But why’s that? Well, during ADA’s boom cycle in 2021, folks were really active on its network, sending the ADA/BTC ratio skyrocketing by 895% between Dec. 21, 2020, and Aug. 23, 2021. Since then, though, that ratio has plummeted by 91.6%, hitting almost a record low on Oct. 25. This drop-off is making people nervous about the ADA token.

    Another clue to ADA’s drop in price is that there’s been less action on its network. In fact, since March, the number of active addresses on the Cardano blockchain has shrunk from 71,270 to 25,680. New wallet addresses have also fallen, from 24,860 to 5,920.

    On top of that, the total value locked up in Cardano has also been on a downward slope for the last six months, losing more than half its worth, from $480.72 million to $214.8 million.

    Individual projects on Cardano’s ecosystem are also seeing losses. Indigo, a debt protocol project, has seen its total value drop by 15% in the last month. Minswap, a decentralized exchange, saw a similar dip, losing 11% to hit $50 million.

    All this points to less activity and demand for the ADA token, which is likely causing the drop in price.

    The decline in ADA’s price today is also part of a trend of increasing divergence between its price and the relative strength index (RSI). Even as ADA’s price experienced a slight rise from Sept. 17 to Oct. 20, its daily RSI was falling. This mismatch often suggests that a trend of increasing prices may be losing its strength, which can lead traders to sell off more at higher prices.

    Source: Cointelegraph

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