Cardano’s market performance has recently taken a downturn, with the coin struggling under pressure from technical issues, declining network activity, and major investors exiting positions. Analysts see this as a shift into a bearish phase marked by a collapse of its long-term trendline and a potential death cross. If downward pressure persists, ADA could revisit its low points around $0.50, representing a 25% drop from current levels. This is compounded by weakened DeFi fundamentals, with Cardano’s decentralized finance ecosystem seeing a significant decline in activity, and total value locked has dropped by over 20%. This contrasts starkly with Solana’s thriving DeFi sector exceeding $25 billion. On-chain capital flow remains limited, with daily trading volumes on exchanges dropping below $4 million. While stablecoin usage hovers around $36 million, indicating minimal activity on the network. A lack of confidence among long-term investors is also evident. Large wallets have unloaded over 350 million ADA tokens last week, signaling a significant exodus from whales who were once key backers of the ecosystem. This behavior often precedes deeper market corrections, especially when coupled with declining participation on-chain. Further fueling the downturn are delayed integrations. The Chainlink collaboration, touted as a gateway to advanced data infrastructure, remains dormant, and the proposed Bitcoin bridge, which was expected to inject liquidity into Cardano’s network, has stalled. While Cardano founder Charles Hoskinson emphasizes the project’s long-term roadmap, market patience is thinning. The challenge for Cardano is to overcome this downturn and reassert its position in the increasingly competitive DeFi landscape. To achieve a positive turnaround, ADA needs more than just technical improvement; it requires demonstrating significant user growth and a renewed focus on addressing existing issues.