Cardano is experiencing a decline, currently trading at $1.051, down 1.2% in the last 24 hours. The decrease is attributed to reduced trading volume and on-chain signals indicating potential further drops. Trading volume surged by over 225% after the U.S. elections, hitting a 2.5-year high of $6.2 billion on November 24, but has since plummeted to $3.7 billion, signaling weakened investor interest. Additionally, the chain's liquidity concentration suggests that support is likely at $0.94, indicating a potential test of this level shortly. Moreover, technical indicators like the Bollinger Bands denote overbought conditions, suggesting a sell opportunity. This overbought status, coupled with a high RSI showing 84, further supports the likelihood of a price decrease to $0.95, the 23.6% Fibonacci retracement level, unless trading volume increases. Despite these short-term challenges, analysts express a cautious optimism about Cardano’s long-term recovery potential if key support levels are held.

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