Cardano Dips to $0.666: What's Next for ADA?

Cardano (ADA) Faces Challenges as Cryptocurrency Market Experiences Weekend Dip

The cryptocurrency market saw a dip over the weekend, with Cardano (ADA), the 10th-largest cryptocurrency by market capitalization, experiencing significant losses. At the time of writing, ADA was down 4.08% in the last 24 hours, trading at $0.677 after an earlier drop to $0.666 and intraday lows of $0.6567.

Cardano has been in decline since May 26, marking the fifth consecutive day of losses. The drop caused ADA to fall below the 50-day simple moving average (SMA) at $0.714, a critical level that will determine whether ADA will extend its consolidation or fall further.

If the ADA price remains below the 50-day SMA, it could indicate that the bulls are racing to the exit. In this scenario, ADA might fall to $0.60, where buyers are likely to step in. A bounce off $0.60 could signal potential range trading in the short term.

To show strength, bulls might need to push and sustain the ADA price above $0.74. If successful, ADA could rise to the overhead resistance of $0.826, which coincides with the 200-day SMA—a crucial level to monitor. A break and close above $0.826 and then $0.86 could send ADA to $1.01.

Despite the current market challenges, Cardano has reached a significant milestone, now supporting a total of 2,002 projects building on its network. Additionally, Bitcoin Ordinals have been bridged to Cardano for the first time using BitVMX, marking a new interoperability milestone.

According to the most recent development report by Input Output, the number of delegated wallets held steady at 1.33 million, reflecting a slight weekly increase of 0.02% and indicating continued user engagement. On the asset side, 10.81 million native tokens have been issued through 215,713 token policies, and development activity is increasing, with 134,286 Plutus scripts and 6,817 Aiken scripts deployed.

Governance engagement has also increased, with 1,331 delegated representatives (DReps), including 963 active DReps—a 1.14% rise from the previous week. Developer contributions remain significant, with 305 GitHub commits, representing a 23.73% increase in weekly activity.