The price of Cardano (ADA) has been under pressure this week as fewer and fewer investors are buying Cardano NFTs and making deposits on DeFi platforms in the ecosystem.
The native ADA token is currently trading at $0.3093, in the last 24 hours its price has fallen by 2.84%. The market cap of this cryptocurrency is around US$10.66 billion.
The Cardano ecosystem is facing problems
Cardano’s price has steadily declined over the past few months. A closer look at the ecosystem statistics reveals that the network is not doing very well. For example, the number of NFT buyers in the ecosystem increased from 35,000 in October to 22,400 in November,
During the same period, the number of NFT sellers in the ecosystem increased from 2,713 in October to 992 in November. As a result, trading volume on Cardano NFTs fell from over $23 million in October to just $8.9 million. The graph below shows the sales volume and number of unique buyers of Cardano NFT.
In contrast, as I wrote in this article, Ethereum’s NFT volume increased from $324 million to $410 million in November.
Meanwhile, the total value of deposits (total value locked) fell to around $77 million from more than $431 million earlier in the year. Most DeFi applications in the Cardano ecosystem such as Minswap, Meld, WingRiders, Indigo and SundaeSwap have seen their overall value drop by more than 25% in the last 30 days.
To be fair, most blockchains have had to deal with large cash outflows over the past few months. After peaking at over $200 billion, the combined value of all DeFi platforms has fallen to just over $64 billion.
A big question is whether DeFi projects in the Cardano ecosystem like SundaeSwap have a future. It seems users have decided to stick with mainstream projects like Uniswap, PancakeSwap, and dYdX.
Meanwhile, on-chain data suggests that entries on Cardano are also trending lower. At the same time, the number of Cardano social measures has recently dropped.
ADA Price Prediction
Looking at the price chart, you can see that Cardano price has been on a slow upward trend over the past few weeks. The coin has formed an ascending channel, which is shown in black. The current price line sits at the bottom of this channel and follows the 25-day and 50-day moving averages.
Cardano’s Relative Strength Index (RSI) has broken below neutral at 50. As a result, the coin is likely to see a break down in the coming days as sellers target the November low of $0.2940. A move above the top of the channel will signal that the buyers have taken over.
In this guide, we explain how to buy or short sell Cardano.