Cardano (ADA) has experienced a turbulent week, losing 17.20% over the last seven days. As of February 3, 2025, ADA is trading at $0.7642, down significantly from its weekly high of $0.922. Despite the price decline, major network upgrades, including the Plomin Hard Fork and Ouroboros Leios, continue to position Cardano as a leader in blockchain innovation.
Read more: Ethereum Tanks 18% in a Week: Is This a Buying Opportunity or a Warning Sign?
7-Day Price Movement: Stability Turns to Volatility
Cardano started the week strong, trading around $0.922 on January 28, maintaining relative stability for the first few days. However, on February 1, ADA began losing momentum, falling below $0.90. The price decline accelerated on February 2, eventually dipping as low as $0.68 before slightly recovering to $0.76 on February 3.
The sharp drop coincided with a surge in 24-hour trading volume, which spiked by 471.68% to $4.7 billion, indicating a flurry of selling pressure and liquidation events. Meanwhile, market capitalization dropped by 13.08% to $26.88 billion, showing significant capital outflows.
Key Market Metrics and Insights
- Market Capitalization: Down 13.08% to $26.88 billion, reflecting weaker investor sentiment.
- 24-Hour Trading Volume: Increased by 471.68% to $4.7 billion, suggesting heightened market activity and potential panic selling.
- Volume-to-Market Cap Ratio: At 17.59%, indicating a significant increase in short-term trading activity.
- Circulating Supply: 35.18 billion ADA, highlighting the growing adoption and usage of the asset.
PLOMIN HARD FORK & OUROBOROS LEIOS: WILL CARDANO RECOVER SOON?
Despite the recent price downturn, Cardano has continued its technological evolution with two major upgrades:
- Plomin Hard Fork 🛠️: This upgrade enhances decentralization and governance, enabling ADA holders to vote on network proposals and shaping the future of the blockchain. The shift to decentralized governance makes Cardano one of the most community-driven networks in the space.
- Ouroboros Leios 🚀: This upgrade focuses on scalability and transaction throughput, improving network efficiency without compromising decentralization. With this implementation, Cardano aims to handle a significantly higher transaction volume, making it more competitive with Ethereum and Solana.
What Triggered Cardano’s Price Drop?
Several factors contributed to ADA’s sharp price decline:
- Market-Wide Sell-Off: Broader crypto market weakness affected major assets like Bitcoin and Ethereum, pulling ADA down as well.
- Profit-Taking: Investors who bought ADA at lower levels may have taken profits, accelerating the price drop.
- Leverage Liquidations: The surge in trading volume (+471.68%) suggests that liquidations of leveraged positions played a role in the steep decline.
- Technical Breakdown: Cardano broke key support at $0.80, triggering stop-loss orders and further sell pressure.
Technical Analysis: Can ADA Recover?
From a technical standpoint, ADA is at a critical support level:
- Support Level: $0.70 is the immediate support, with a major zone near $0.65.
- Resistance Level: ADA needs to reclaim $0.80-$0.85 to regain bullish momentum.
- Bullish Outlook: If ADA holds at $0.70, the price could consolidate before attempting another breakout.
- Bearish Scenario: A drop below $0.65 could signal further downside, possibly retesting $0.60.
Read more: Dogecoin’s Wild Week Dips Below $0.25: ETF Hype Meets Market Reality
HIGH TRADING VOLUME SIGNALS BIG MOVES AHEAD FOR CARDANO
Despite the price decline, Cardano’s long-term fundamentals remain strong due to its commitment to decentralization, governance, and scalability. With the Plomin Hard Fork and Ouroboros Leios upgrades, ADA is well-positioned for future growth.
However, near-term price action depends on macro trends, broader market sentiment, and whether ADA can reclaim key support levels. If trading volume remains elevated, ADA could see a price recovery in the coming days.
Final Thoughts
Cardano’s 17.20% price drop has raised concerns among traders, but its growing adoption and network upgrades offer long-term potential. The spike in trading volume suggests high investor activity, and if ADA stabilizes above $0.70, a recovery rally may be possible.
As always, investors should closely monitor support/resistance levels, macro trends, and on-chain developments to navigate Cardano’s price movements effectively.
Stay informed and trade responsibly! 🚀
