- ADA’s price risks a significant decline in May 2025.
- Developer activity has decreased by 48% since January.
- Technical indicators suggest potential further price drops.
The event highlights a potential major drop in Cardano’s price, affecting market confidence and revealing contrasts between short-term pressures and growth prospects.
Current Market Scenario
Cardano is encountering significant bearish pressure as of May 2025, with predictions of a potential 25% price decline. It is currently trading between $0.657-$0.67, down from previous highs. The failed attempt to reclaim the resistance level of $0.68-$0.70 has contributed to persistent downward pressure.
Contributing to the pressure is a notable decline in developer activity with GitHub submissions dropping from 92 in January to 48, a decline of 48%. This reduction suggests possible stagnation within the Cardano ecosystem. The Total Value Locked (TVL) remains stagnant below $500 million, behind competitors like Sonic and Base.
The technical analysis reflects a bearish outlook, with ADA breaking below an ascending trendline formed since April 2025. It trades below all major exponential moving averages on the 4-hour timeframe. According to a Technical Analyst from Cryptocurrency Insights, “ADA is trading below all major exponential moving averages on the 4-hour timeframe, showcasing a bearish trend.” The Relative Strength Index (RSI) remains around 35, indicating ongoing selling pressure.
Market Projections
Immediate market effects include concerns over potential further declines if current support levels around $0.67 fail to hold. Analysts predict a potential drop to $0.50, marking a 25% decline from current levels. The $0.66-$0.68 range serves as a historical support zone.
Long-term projections, however, contrast short-term trends as optimistic targets are set by some analysts. Charles Hoskinson, Founder of Cardano, reportedly suggests future price targets between $3 and $10 as the ecosystem matures. This reflects a divergence between short-term technical concerns and long-term aspirations.
In conclusion, the bearish scenario for Cardano emphasizes critical monitoring of support levels. Investors should remain vigilant as the potential decline could affect market stability in the short term. The broader impact depends on developer engagement and technical recovery.
