Cardano (ADA) continued its decline on Monday, falling more than 5% to trade around $0.57, extending last week’s 10% decline.
Related Reading: XRP’s Next Earthquake: Billions Expected to Flow In, ‘Supply Shock’ Coming – Analyst
Market data from CoinGlass shows that trader sentiment is becoming increasingly bearish, with ADA’s long/short ratio at 0.75, the lowest this month. The metric indicates that more traders are betting on further declines.
On-chain data reflects this negative outlook. According to Santiment, daily active addresses on the Cardano network fell from 32,115 in mid-October to 24,280 on November 3, signaling reduced demand and declining engagement.
Technical indicators also reflect weakness. ADA’s RSI sits at 32, deep in bearish territory, while the MACD histogram shows a slowdown in bullish momentum. Analysts warn that a sustained move below $0.55 could open the door for deeper corrections towards the $0.49 support zone.
Hoskinson: “It’s not a technology problem, it’s a coordination problem”
As prices fall, Cardano founder Charles Hoskinson has reignited the debate over the network’s DeFi performance.
In his latest podcast, Hoskinson criticized the ADA community for its limited participation in decentralized finance platforms, saying that Cardano’s total value locked (TVL) could easily reach $5-10 billion if users adopted native DeFi protocols.
He said: “This is not a technology problem. It is a governance, coordination and accountability problem.” Despite over 1.3 million ADA holders betting on the network, few are engaging in DeFi applications, leading to stagnation.
The current TVL stands at $271 million, far behind Ethereum’s $85 billion and Solana’s $11 billion. Hoskinson argued that without community adoption, it would remain difficult to attract users from other ecosystems.
Cardano (ADA) DeFi Integration and Institutional Accumulation Offer Hope
Despite its slow DeFi performance, Cardano remains one of the most active blockchains in terms of development activity, outperforming Ethereum and Solana as of late October, according to Santiment data.
Projects like Midnight and RealFi aim to connect Cardano to Bitcoin liquidity and real-world lending markets, potentially unlocking billions in capital inflows.
Related reading: Dogecoin must defend this level to avoid $0.07 collapse, on-chain data shows
Meanwhile, big investors appear to be accumulating quietly. Recent data shows that over 37.5 million ADA has been transferred from Coinbase to private wallets, a sign of long-term confidence. Combined with regular outflows of tokens from exchanges, this accumulation phase could lay the foundations for a future recovery.
As Hoskinson says: “We can do just about anything, the question is: can we do it together?” »
Cover image from ChatGPT, ADAUSD chart from Tradingview
