Cardano Price Looks Weak But Long Term Potential Is Growing

Cardano (ADA) is facing renewed bearish pressure as it hovers near a technical point. Cardano price trading around $0.63, ADA is showing signs of fatigue after multiple rejections at the 21-day moving average (21DMA), a resistance level that continues to cap short-term upside.

This stagnation has put the altcoin in a precarious position, where the next few sessions could determine whether Cardano price (ADA) retests local support or slides to much lower levels. While on-chain fundamentals for Cardano remain intact, worsening macroeconomic sentiment and fragile crypto markets are weighing on speculative assets, pushing ADA closer to a make-or-break zone.

Bearish Macro Signals Raise Alarm for ADA Bulls

Amid heightened geopolitical and economic tension, ongoing trade war rhetoric, especially the Trump administration’s push for reciprocal tariffs, has introduced volatility across global markets. Analysts believe this uncertainty is driving capital away from high-risk altcoins like ADA and into perceived safe havens such as gold and Bitcoin.

Cardano, despite being one of the more established blockchain networks, remains a high-beta asset. Cardano price often underperforms during risk-off environments. The current sentiment suggests that if bears regain control, Cardano price could revisit its 2024 lows near the $0.30 level, a potential 50% drawdown from current prices.

Technical charts echo this caution. ADA’s failure to reclaim the 21DMA points to waning bullish conviction. If selling pressure intensifies, especially if macro shocks continue, ADA’s next key support may not be until the $0.30 price zone.

Bitcoin and Gold Rally as ADA Lags Behind

While ADA’s trajectory appears uncertain, Bitcoin (BTC) and gold have emerged as macro winners. BTC’s evolving narrative as a “neutral reserve asset” is driving renewed interest from institutional investors, particularly as the U.S. dollar weakens and inflation remains elevated.

Cardano, on the other hand, hasn’t yet achieved the liquidity or market confidence that larger-cap assets enjoy. With U.S. economic slowdown risks on the horizon and the Federal Reserve hesitant to stimulate due to inflationary concerns, speculative altcoins like ADA face an uphill battle.

This macro divergence shows the shift in capital flow: high-conviction assets are rallying, while lower-utilization chains are struggling to attract attention in risk-averse markets.

Is Current Cardano Price Undervalued or a Risky Bet? 

Despite the bearish Cardano price short-term outlook, Cardano’s long-term fundamentals remain compelling. The blockchain recently completed a major governance overhaul and is preparing to roll out a Bitcoin DeFi sidechain in 2025. These updates suggest that ADA’s infrastructure is evolving to meet future decentralized finance needs.

However, critics still label Cardano a “ghost chain” due to relatively low on-chain activity. According to DeFiLlama, Cardano’s total value locked (TVL) is hovering around $300 million, substantially lower than Ethereum’s $46 billion or Solana’s $7.5 billion. While this indicates limited adoption, it also points to upside potential if Cardano can gain traction.

ADA’s market cap—currently around $22 billion—suggests that if Cardano executes on its roadmap and macro conditions improve, the asset could reprice significantly. A return to its previous all-time high above $3.00 would represent over a 5x return from current levels.

Cardano vs Competitors: Is the Valuation Gap Justified?

These comparisons highlight how far Cardano lags in adoption but also show potential for growth. If ADA can bridge the usage gap while leveraging its strong community and upcoming DeFi integrations, long-term holders may benefit from a value re-rating.

Crypto Investor Outlook: Is Now the Time to Buy ADA?

Institutional sentiment toward crypto remains cautious, and retail investors are largely risk-off. But contrarian investors are beginning to assess altcoins like ADA for long-term accumulation. With U.S. crypto policy expected to turn favorable under the current administration, ADA may benefit from renewed development funding and regulatory clarity in the near future.

Previous patterns suggest that buying during macro fear and technical consolidation zones often produces better returns over time. However, investors should monitor Cardano’s price behaviour closely at key support levels.

Conclusion: Can ADA Rebound or Will the Bears Win?

Cardano’s price is at a pivotal moment. A failure to reclaim resistance at the 21DMA could accelerate a correction down to $0.30, a 50% crash from current levels. But longer-term, ADA remains a strong candidate for recovery, especially if the network successfully onboards new users and applications in the DeFi sector.

For now, traders must navigate a high-risk, high-reward environment where technicals are fragile, macro headwinds are real, and conviction in ADA is being tested. Those with a long-term horizon and tolerance for volatility may find Cardano price at this level an attractive entry, while short-term traders may prefer to wait for clearer confirmation.

FAQs

Why is Cardano’s price under pressure right now?

ADA is facing resistance at its 21DMA and broader macroeconomic pressures, including trade war volatility and risk-off sentiment in crypto markets.

Is a 50% Cardano price crash possible?

If macro conditions worsen and ADA fails to reclaim resistance, a Cardano price drop to $0.30, a 50% fall from current levels, is plausible based on past support.

Does Cardano have long-term growth potential?

With a governance overhaul and Bitcoin DeFi plans, Cardano’s fundamentals suggest long-term potential, though short-term risk remains high.

How does Cardano compare to Ethereum and Solana?

ADA lags in adoption and TVL but has a significantly lower market cap. If the ecosystem grows, ADA could close the valuation gap.

Glossary

ADA – The native cryptocurrency of the Cardano blockchain, used for staking, governance, and transaction fees.

21DMA (21-Day Moving Average) – A technical indicator that shows the average closing price of an asset over the past 21 days; often used to identify trend directions or resistance levels.

TVL (Total Value Locked) – A metric that represents the total value of assets deposited in decentralized finance (DeFi) protocols on a blockchain.

DeFi (Decentralized Finance) – A financial ecosystem built on blockchain technology that operates without traditional intermediaries like banks, offering services such as lending, borrowing, and trading.

Ghost Chain – A term used to describe a blockchain with low on-chain activity or minimal real-world usage despite having active development or community presence.

Macro Conditions – Broad economic and geopolitical factors (e.g., inflation, interest rates, trade policy) that influence financial markets, including cryptocurrencies.

Liquidity – The ease with which an asset can be bought or sold in the market without affecting its price. Higher liquidity generally means lower volatility.

Sources

Cryptonews

Tradersunion

Coinfomania

Dlnews

Coindesk

Bitcoinist