Cardano (ADA) has faced a notable decline, losing 7.4% over the last 72 hours to a trading price of $0.338 as of October 25, 2024. This downturn follows previous gains earlier in the week, reflecting shifting investor sentiment towards the cryptocurrency. ADA's struggles are part of a broader bearish trend affecting many altcoins, with Bitcoin outperforming ADA significantly this year, contributing to a decline in the ADA/BTC ratio to near all-time lows. This underperformance is linked to diminishing network activity on the Cardano blockchain, with active addresses plunging dramatically in recent months and the total value locked (TVL) in decentralized finance (DeFi) protocols also dropping significantly. Additionally, a bearish divergence noted between ADA's price and its relative strength index (RSI) suggests weakening momentum in the upward trend, encouraging traders to sell. Overall, these factors highlight the reduced demand for ADA tokens, leading to adverse price movements.

Source 🔗