The Cardano price remained under pressure this week, erasing some of the gains made last week when it rose to its monthly high.
Cardano (ADA) retreated for the second consecutive day, reaching a low of $0.670. It has dropped by almost 10% from its highest level this week.
A potential catalyst for Cardano is that it is attracting more long-term investors, even as it remains 50% below its highest level from November last year.
Data compiled by StakingRewards shows that there was a net increase of 307 million ADA staked on Cardano. These tokens are valued at over $215 million. Most of the increase happened on April 30, when 160 million ADA tokens were staked.
Cardano now has a staking ratio of 60.65% as coins worth over $15.3 billion have been staked. This is a bigger ratio than Ethereum (ETH), which has a staking ratio of 28%, and Tron (TRX), which has 42%. A higher ratio is a sign that investors have a longer outlook for a coin.
ardano also has other bullish metrics. The total value locked in the network has jumped to $394 million, with dApps like Minswap, Liqwid, Indigo, and Splash Protocol leading the charge. The daily DEX volume on the chain has also averaged over $4 million in recent days.
Cardano’s main catalyst is the upcoming Bitcoin (BTC) integration, which will enable Bitcoin holders to generate returns through a secure, zero-knowledge-based approach.
Cardano price technical analysis
AD price chart | Source: crypto.news
The daily chart shows that ADA has been in a downward trend over the past few months. It has fallen from a high of $1.326 in December last year to the current $0.68.
The coin has dropped below the 61.8% Fibonacci retracement level, a key level often associated with reversals. It has also fallen below the 50-day Exponential Moving Average, a sign that bears are gaining control.
Cardano’s ongoing retreat followed a retest of the upper boundary of its descending channel. Therefore, the coin will likely continue falling as bears target the lower side of the channel at $0.513, about 24% below the current level. A move above the channel’s upper boundary would invalidate the bearish outlook.
