Cardano's price has dropped 8% to $0.918 on January 9, influenced by declining network activity and onchain signals indicating further potential losses. Since early December, daily active addresses on the Cardano blockchain have plummeted from 96,700 to approximately 38,200, while daily transactions decreased from around 144,300 to 54,600. The total value locked (TVL) in Cardano's DeFi ecosystem has also seen a significant decline, with a drop of 31.5% from $708.9 million to about $485 million. This waning user engagement implies reduced demand for ADA tokens, which negatively affects its price. Additionally, Cardano's open interest has decreased by over 17% recently. The technical setup suggests a correction within a bull flag formation, with critical support at $0.782. Analysts are cautious, predicting further downside if the support fails, potentially targeting levels as low as $0.60 if confidence continues to wane.

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