Cardano’s Price Recovery Stalls – Here’s the Brutal Truth Behind the Downturn

Cardano bulls just got handed a reality check—and the charts aren’t lying. Despite whispers of a comeback, ADA’s trajectory looks more like a ghost chain’s graveyard than a revival. Here’s why.

Network activity flatlines

No developer buzz, no major dApp launches—just crickets. When chains like Solana and Ethereum hog the spotlight, Cardano’s ‘slow and steady’ approach starts smelling like neglect.

Liquidity bleeds out

Trading volumes? Anemic. Exchange inflows? Drier than a banker’s sense of humor. Without fresh capital, even the most devout HODLers can’t prop up ADA’s corpse.

The institutional cold shoulder

Wall Street’s crypto playbook now reads: ‘Buy BTC, ETH, and… wait, what’s Cardano again?’ Until hedge funds stop treating ADA like a meme coin, recovery’s a pipe dream.

Bottom line: In a market that rewards ruthless innovation, Cardano’s academic purity might just be its death warrant. But hey—at least the staking rewards still beat your savings account (for now).

Any Cardano price bounce would likely be quickly overwhelmed

Source: Santiment

Data from Santiment showed that while the daily active addresses remained relatively steady, the development activity has been falling since February. The drop in dev activity WOULD be a concern for long-term investors, especially.

The 90-day MVRV ratio has been positive for nearly two months. This came after Cardano’s recovery from $0.57 in April, rallying to hit $0.8 by mid-May. The swift bounce from $0.65 to $0.72 earlier this month also saw the MVRV ratio shoot higher.

This highlighted that holders of the last 90 days were in profit, despite the DEEP retracement. The share of holders in profit was falling rapidly too. This meant that any attempted recovery from ADA bulls would be met with selling pressure as holders exit at break-even or a slight profit.

The mean coin age was on a downtrend too, showing network-wide distribution. This trend would need to change for cardano to recover.

Source: ADA/USDT on TradingView

The market structure flipped bearishly on 30 May, when Cardano fell below the $0.71-level (red). The next low at $0.51 would be the immediate target. A drop below $0.51 and a retest of the same level as resistance would give a short-selling opportunity targeting the $0.427 support.

At the time of writing, a bullish recovery was not in sight. The sellers were too strong. A short-term range formation might be an early sign that a bottom was forming, but it must come alongside heightened demand,. For example, an uptrend on the mean coin age metric front.