The daily chart shows that the price of Cardano has plummeted and has formed numerous bearish chart patterns. Recently, it formed an ascending wedge pattern, which occurs when there are two upward and converging trend lines.
It has also formed a head and shoulders pattern, which often leads to greater declines over time. And more importantly, the difference between the 50 and 200-day exponential moving averages (EMA) has continued to narrow. This means that it is likely that the token will form a death cross pattern, which also leads to greater declines.
The coin is in the process of forming a bearish flag or pennant. This indicates that it will continue to decline in the short term, possibly down to the next key support at $0.50, its low in April and June of this year. This price is approximately 25% below the current level.
The bearish price forecast for ADA for 2025 will be invalidated if it surpasses the lower limit of the ascending channel. If this happens, the token is likely to reach the resistance of $1.
The price of Cardano presents some of the weakest fundamentals among the largest cryptocurrencies. For example, while the DeFi ecosystems of Ethereum, Solana, and BNB Smart Chain are thriving, Cardano continues to languish.
Data shows that the total value locked (TVL) in the ecosystem has spiked by 20% in the last 30 days, reaching $288 million. In contrast, Solana has over $25 billion.
The supply of the Cardano stablecoin is only $36 million, an insignificant amount considering that the industry has over $290 billion in assets. Additionally, the DEX volume in the last 24 hours was below $4 million.
Worse still, Cardano has not yet achieved most of the objectives that Charles Hoskinson has set in recent months. For example, the supposed integration with Chainlink has not yet materialized. Additionally, Cardano has not yet integrated with Bitcoin, a process that was supposed to free up billions of dollars for its network.
These weak fundamentals likely explain why whales have sold millions of tokens. They sold ADA tokens worth over $350 million last week. Whale selling is one of the most bearish signals in the cryptocurrency market.
