Cardano Under Pressure: Falling Network Activity Adds to ADA Selling Concerns

After ending September with massive gains, Cardano appears to be struggling again, losing almost 12% in the past week alone. But new data suggests that it could face more downside pressure as whale selling and weaker network activity raise concerns about its price outlook. According to crypto analyst Ali Martinez, large holders have sold more than 110 million ADA over the past five days. This adds selling pressure as the token approaches a key support level. To top that, network activity is also slowing. Daily active addresses have dropped 41.36%, after falling from 27,248 to 15,977. The decline indicates fewer users are interacting with the Cardano network. All eyes are on the $0.24 support level. Martinez believes that a break below it could push ADA toward $0.21, near the lower boundary of its rising channel. Despite the drop in daily active addresses, Cardano recently set a new transaction record for the first time in five years. During Epoch 660, the network handled 1,780,896 transactions, beating its previous high of 1,566,974 from November 2021. That works out to an average of 83.83 transactions per block, which is a new all-time high for the network. While short-term signals exhibited a mixed picture, Crypto Patel is sticking to a much more optimistic view of ADA. The analyst believes Cardano could still have plenty of room to run. The analyst is now watching $0.2887, a level the crypto asset needs to close above on the two-week chart to confirm the breakout. If that happens, ADA’s rally could extend toward $0.50, $1, $2, $3, and eventually $5. Beyond its price action, the ecosystem has seen a couple of notable developments. The Cardano Foundation rolled out CIP-0113, a new token standard for regulated assets last week. It lets issuers set rules on who can hold their tokens and freeze or seize holdings when required. The move could make it easier for banks and fund managers to bring assets like bonds and funds onto Cardano. Additionally, the foundation’s digital identity project, Veridian, has become an independent Swiss company. It has also tokenized its shares on Cardano and plans to build identity tools for businesses, governments, and AI agents. The post Cardano Under Pressure: Falling Network Activity Adds to ADA Selling Concerns appeared first on CryptoPotato.