Cardano (ADA) is back under pressure as analysts warn the cryptocurrency may be entering one of its most vulnerable phases in years. After a prolonged downtrend and weakening ecosystem activity, Cardano’s outlook has turned sharply bearish, with several researchers now forecasting a potential 30 percent decline from current levels.
A Stark Warning From Industry Experts
The shift in tone accelerated after Alex Svanevik, CEO of blockchain analytics firm Nansen, described Cardano as “a total ghostchain” and suggested it could fall out of the top twenty cryptocurrencies by 2026. His comments reflect a growing belief among analysts that Cardano has failed to convert years of academic development into meaningful usage or liquidity.
Third-party data shows that daily activity across the network’s decentralized finance and NFT sectors remains muted. Cardano’s total value locked (TVL) sits near 230 million dollars, while its stablecoin supply is only around 35 million dollars, leaving it far behind rival chains that attract significantly higher levels of liquidity and user engagement.
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Upgrades Continue, but Adoption Remains Slow
Development work on Cardano has continued. Recent technical upgrades have included work related to Hydra, changes tied to the Leios consensus design, and ongoing development of the Midnight sidechain. These improvements have generated excitement inside the community, but they have yet to translate into the kind of sustained user growth or developer traction needed to lift sentiment.
There remains a gap between continued development and actual usage on the network. Other blockchains have seen faster transaction activity, higher liquidity, and greater institutional participation over the same period, which has drawn attention away from Cardano.
Charts Signal a Deeper Decline
Price action has done little to calm nerves. ADA has moved lower from a recent high near 1.09 dollars and has fallen below several support levels that held earlier in the year. Recent price action continues to trend downward.
The 50-day average is now below the 100-day average, a level some traders keep an eye on. Attention has shifted toward the 0.2760 dollar range, which has come up in recent discussions as a possible area of interest. Reaching that level would mean further downside from where the token is trading now.
Other indicators have not shown much bullish change and do not look promising. Selling has continued, and there has been little sign of a sustained bounce so far.
Wider Market Pressures Add to the Risk
The broader altcoin market has also been quiet and has not helped ADA’s cause. ADA’s trading volumes are lower than they were earlier in the year, and “short” positions against ADA have increased. These conditions raise the risk of sharper moves if buyers fail to step in. While short squeezes are always a possibility, the immediate downside pressure remains the dominant force
A Crucial Moment for Cardano
A bigger drop would shake investors’ faith at a time when Cardano’s long-term story is already being looked at closely. The project has built its reputation on being academically sound and developing in a methodical way, but these strengths won’t matter as much if it doesn’t catch up to its competitors.
On-chain activity on Cardano remains lighter than on several other networks. Meanwhile, rival networks like Solana, Ethereum and BNB Chain are capturing more developer activity, more liquidity, and more institutional interest.
For now, analysts remain cautious, and the coming weeks may determine whether ADA finds stability or continues toward the lower levels being highlighted by market researchers.
