Cardano's ADA Drops 13% Amid Market Volatility, Despite Network Growth

Cardano's native token, ADA, has experienced a tumultuous week, with its price dropping by nearly 13% amid high liquidations and market-wide volatility. The token's price has slipped from $0.70 to around $0.60, with over 241,000 traders facing losses on June 13 alone. This market-wide sell-off wiped out $1.14 billion across major assets, including ADA, Bitcoin, Solana, Ethereum, and Ripple. Despite the price pressure, ADA's trading volume jumped by 30.12% in one day, indicating that traders remain engaged with the asset.

Despite the price drop, the Cardano network continues to show signs of life. The network added over 100,000 new wallets in just two months, bringing the total number of wallets to over 5.4 million. This growth in wallet adoption is a positive sign for the network's long-term prospects. Additionally, Ford Motor Company recently entered the Cardano scene, partnering with Iagon and Cloud Court to launch a Proof-of-Concept for decentralized legal data storage. This initiative could change how corporations handle sensitive legal documents and adds credibility to the Cardano network.

The big question is whether these positive ecosystem signals can pull the price of ADA back to $0.65. According to the analyst's forecast, ADA is expected to trade around $0.65–$0.70 by mid-2025, which is well below its peak but shows resilience and signs of a budding uptrend. However, the token's price is currently fluctuating around the $0.63–$0.65 range, with technical indicators providing mixed signals. The Relative Strength Index (RSI), a momentum oscillator, is currently in the neutral zone, neither overbought nor oversold, which adds to the uncertainty surrounding ADA's short-term price movements.

Chart watchers have noted a triangle pattern nearing its apex, which could either break the resistance at $0.65 or push ADA toward the 200-day line at $0.55. On-chain analysts, however, are more optimistic about ADA's prospects, citing the token's strong fundamentals and growing adoption as reasons for their bullish stance. The 200-day line is a key support level for ADA, and a break below this level could signal a further decline in the token's price. If the bulls regain control of the market, ADA could likely hit the $0.65 resistance level in the short term. An extended bullish run could see ADA hit $0.77, according to the analyst's forecast.

Ask Aime: Is Cardano's price drop due to market-wide volatility or is it a temporary setback?