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ADA Price Forecast – Why Is Cardano’s Price Struggling Despite Early 2025 Rally?
ADA Price Forecast – Since late May, Cardano (ADA) has been experiencing a downward price trend despite a strong rally earlier in the year. When Bitcoin (BTC) surged from $76,000 to $111,600 between April and mid-May, Cardano followed with a respectable 46% increase, pushing its price from $0.57 in April to $0.8 by mid-May. However, this rally only reclaimed the lows of a six-month-old trading range, failing to break into sustained upward momentum.
Development Activity Decline Raises Long-Term Concerns
Data from Santiment reveals that while daily active addresses on the Cardano network have remained stable, development activity has steadily declined since February. This drop in developer engagement is a potential red flag for long-term investors who closely monitor project progress as a sign of health and future growth.
MVRV Ratio Indicates Profit-Taking Pressure
The 90-day MVRV ratio has stayed positive for nearly two months, reflecting that holders over the past 90 days remain in profit despite recent pullbacks. This ratio surged following ADA’s bounce from $0.65 to $0.72 earlier in June. However, the share of holders in profit is rapidly declining, suggesting that any price recovery might face significant selling pressure as investors exit near break-even or slight gains.
Bearish Market Structure and Key Support Levels
Cardano’s market structure turned bearish on May 30, when the price slipped below the critical $0.71 support level. The next target is the $0.51 low, with a potential drop below this level opening the door for a retest of $0.51 as resistance. This scenario could present a short-selling opportunity aimed at the $0.427 support zone.
Short-Term Outlook Remains Bearish
At the time of writing, no clear signs of a bullish recovery have emerged, as selling pressure remains dominant. While a short-term range formation might hint at a potential bottom, it requires a corresponding increase in demand and positive shifts in metrics such as the mean coin age. Until such trends appear, ADA’s price action is likely to remain under pressure.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
