Cardano (ADA) is grappling with a challenging market outlook as of June 2025, with its price recovery appearing unlikely in the near term, according to a recent analysis by Santiment.
The cryptocurrency, which saw a notable 46% rally in April and May alongside Bitcoin’s climb to $111.6k, has since trended downward since late May, failing to break free from a six-month trading range. This bearish shift has raised concerns among investors, particularly as heavy selling pressure and declining network activity dominate the scene.
Source: Santiment
Data from Santiment reveals a troubling trend: Development activity on the Cardano network has been steadily declining since February 2025. This drop, coupled with a negative mean coin age trend, suggests a network-wide distribution phase, where holders are offloading their ADA rather than holding for long-term gains. The 90-day MVRV ratio, which turned positive during the April-May rally, has since fallen, indicating that recent buyers are selling at break-even or slight profits, adding further downward pressure.
Technically, the market structure flipped bearish on May 30 when ADA fell below the $0.71 level. Analysts point to a potential drop to $0.51, with a retest of this level as resistance possibly opening short-selling opportunities targeting the $0.427 support. While some optimistic forecasts, like a $2.40 target from TheCryptoBasic, suggest bullish potential, these hinge on a reversal in key metrics such as mean coin age and heightened demand—conditions not yet evident.
For now, Cardano bulls remain passive, and any short-term bounce is likely to be met with resistance from sellers. Investors are advised to monitor development activity and network demand closely, as these will be critical in determining whether ADA can reclaim its upward momentum or face further declines in this volatile market.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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