Cardano (ADA) Price Slumps: Network Activity Dips

Cardano Price and Network Activity Decline

Cardano's ADA price experienced a significant downturn in February, falling 27% since the beginning of the month. This drop has pushed ADA to a multi-month low, raising concerns among investors. The decreased price is coupled with a noticeable slump in network activity, indicating reduced investor engagement.

ADA Investor Participation Decreases

The number of active Cardano addresses has fallen to a three-month low, reaching 25,600—the lowest level since November 2024. This decline in active addresses reflects waning investor confidence and reduced on-chain activity. Transaction volumes have also decreased, further supporting this trend of reduced participation.

This sustained downturn in network participation since November 2024 suggests weakening demand for ADA and could contribute to the ongoing price struggles. A shift in market sentiment is needed to reverse this trend.

Long-Term Holder Behavior

Despite the price decline, Cardano's Mean Coin Age (MCA) has increased since the start of the year. This indicates that long-term holders (LTHs) are holding onto their ADA rather than selling. This accumulation of ADA by LTHs is a positive sign, potentially providing stability and limiting further selling pressure.

Cardano Price Analysis and Outlook

ADA is currently trading around $0.70, a crucial support level. A break below this level could trigger further losses and intensify bearish momentum, potentially pushing the price toward $0.62. However, continued support from LTHs could lead to a bounce off the $0.70 support, potentially reaching $0.77.

Codeum provides essential services for blockchain projects, including smart contract audits, KYC verification, and custom development. We help ensure the security and success of your blockchain initiatives.