According to a new analysis by Santiment, Cardano (ADA) faces unfavorable market conditions. Following significant growth in April and May, the coin experiences difficulties in recovering its price.
Current Market Situation of Cardano
Cardano previously showed impressive growth: in April and May, the price increased by 46% alongside Bitcoin's rise to $111.6k. However, since late May, the price of ADA began to decline, leading investors to conclude it is unable to break free from a six-month trading range.
Development and Network Activity Data
According to Santiment data, development activity on the Cardano network has steadily decreased since February 2025. This decline, together with a negative mean coin age trend, indicates a network-wide distribution phase, where holders are starting to offload their ADA assets.
Forecasts and Investor Recommendations
Technical analyses indicate that the market structure flipped bearish on May 30 when ADA fell below the $0.71 level. Analysts suggest a potential drop to $0.51, with a target support level of $0.427. Meanwhile, some optimistic forecasts, like a $2.40 target from TheCryptoBasic, depend on improvements in key metrics that are not yet observed.
For investors, it is crucial to closely monitor development activity and demand on the Cardano network. These factors will be decisive in determining whether ADA can regain its upward momentum or continue to decline in a volatile market.
