Analyzing Cardano's ADA Downtrend: On-Chain Metrics and Technical Challenges

Cardano's ADA token experienced a downturn in price on April 10, which can be attributed to several factors. On-chain metrics, such as trading volume and the number of core developers, showed declines, with the number of active GitHub users dropping by 16.5% and transaction volume decreasing by 80.7% over a recent period. Additionally, the total value locked (TVL) on the Cardano network also saw a notable drop. From a technical perspective, ADA entered a corrective cycle in mid-March after reaching a two-year high, leading traders to take profits as the relative strength index (RSI) indicated overbought conditions. The price decline was further confirmed by ADA's movement within a descending parallel channel, with a rejection from the upper boundary at $0.61 signaling resistance. If this level is not flipped to support, ADA's downtrend is likely to continue. Resistance around the $0.58 to $0.60 range has proven strong, indicating further challenges for ADA's recovery.