Key Insights
Cardano price has dropped 73% since December but now trades near a long-term support zone, suggesting limited downside.
RSI and Stochastic Oscillator readings indicate ADA is oversold, supporting the case for a possible price recovery.
Cardano DeFi volume surged after the NIGHT token launch, with December volumes at the highest levels since January.
Cardano's price continued its downward movement this week, slipping to $0.3565, marking a sharp 73% drop from its December peak of $1.3245. This latest level is the lowest since November last year, deepening the bearish sentiment surrounding the asset. Despite this, technical indicators and network metrics suggest a possible rebound may be underway.
Cardano has broken below its key support at $0.5140, which acted as a crucial level during February and April this year. The coin now trades well below all major moving averages, confirming sustained bearish momentum. However, the current price level is nearing the support zone around $0.3056, which historically provided a strong price floor between July and October last year.
Source: TradingView
The Relative Strength Index (RSI) stands at 27, signaling that the token is now heavily oversold. The Stochastic Oscillator is also hovering at multi-month lows, which may indicate selling pressure is losing momentum. These indicators, combined with proximity to long-term support, have raised expectations of a technical rebound.
Cardano DeFi Activity Sees Surge After NIGHT Token Launch
Network activity has picked up following the launch of Midnight's NIGHT token, Cardano’s new sidechain project. The token quickly gained traction, boosting the market capitalization to over $1.3 billion and leading to a spike in decentralized exchange (DEX) volume across the Cardano network.
According to data from DeFi Llama, Cardano DEXs processed over $193 million in volume in December, nearly doubling November’s total of $100 million. This marks the highest activity level since January and reflects growing confidence in Cardano’s DeFi ecosystem.
Upgrades and Ecosystem Growth Offer Long-Term Support
Cardano’s development roadmap includes significant upgrades, including the upcoming Leios upgrade aimed at improving transaction throughput using parallel processing. Additionally, anticipation around a potential ADA exchange-traded fund (ETF) from Grayscale in 2026 adds a longer-term bullish element to the asset's outlook.
The next price target for ADA is expected near $0.5241, representing a 40% climb from current levels, provided it maintains support above $0.3056. Sustained growth in network usage and successful implementation of upcoming upgrades could support such a move.
The post Cardano Nears Key Reversal Zone as Network Activity Rebounds appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
