Cardano (ADA) Continues to Face Downward Pressure, Trading at $0.325 as of Aug. 16

The cryptocurrency is currently grappling with strong resistance at $0.367, a level that once served as solid support before collapsing on Aug. 5.

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Cardano (ADA) price continues to face selling pressure, trading at $0.325 on Aug. 16. The cryptocurrency is now grappling with a key resistance level at $0.367, which once served as solid support before collapsing on Aug. 5.

The struggle comes amid a broader market downturn, with the global crypto market cap decreasing by 2.62% over the last day to reach $2.04 trillion.

ADA Encounters Resistance At $0.367 As Broader Market Trends Bearish

At press time, ADA/USD is trading at $0.325, down 3.85% over the past day. It has a market cap of $11.69 billion and a 24-hour trading volume of $403.48 million. ADA encounters resistance at $0.367, while broader market conditions remain bearish.

The daily chart reveals a descending triangle pattern, which is a bearish continuation signal. This pattern is characterized by lower highs converging towards flat support at $0.318, and it often precedes further declines, especially in extended bear markets.

Adding to the bearish sentiment, daily active addresses for ADA have seen a sharp decline. According to Santiment data, the daily active addresses for ADA dropped from 36,657 on Aug. 8 to around 10,000. This decline in daily active addresses may indicate reduced retail participation and growing bearish sentiment.

Coinglass data further supports this bearish outlook, showing $649.1k liquidated in the past 24 hours, with $549.81k from long positions. This indicates further sell-offs are to be expected.

The Market Value to Realized Value (MVRV) ratio for Cardano suggests that ADA might be nearing undervalued territory. A low MVRV ratio often indicates undervaluation, which could attract buyers.

Long-Term Holders Show Confidence As Trading Volume Soars

Despite the bearish signals, long-term holders of Cardano are showing optimism. According to Coinglass, there has been a net outflow of $1.75 million in ADA from exchanges in the past 24 hours, totaling $4.87 million over the past week.

This outflow indicates that holders are transferring their ADA to personal wallets, reducing its circulating supply on exchanges, which could lead to upward price pressure.

Furthermore, Cardano’s Total Value Locked (TVL) in DeFi protocols has been rising, reaching $199.27 million, according to DeFiLlama. This increase in TVL signals growing participation in DeFi initiatives, which could support ADA’s price.

Interestingly, contrasting the declining price, ADA’s trading volume has surged 128.38% in the last 24 hours, reaching $465.76 million, according to Coinglass. This increase in volume could indicate renewed interest from traders, potentially setting the stage for increased volatility in the coming days.

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