Cardano (ADA) has recently experienced a downturn, indicative of broader market headwinds. The asset, once floating comfortably above the $0.50 benchmark, has seen a persistent decline, falling below critical support levels. Today's trading session commenced with ADA at $0.475 and witnessed a descent to a worrying $0.4508, outlining a 4.65% decrease over the last day.

ADA is currently battling to regain lost ground, with immediate resistance formed around the $0.4740 level.The market cap followed suit with a 4.64% fall, adding to a sense of cautious sentiment among traders. Despite a trading volume uptick of 4.75%, signaling increased activity, this has yet to translate into upward price momentum. The market cap currently stands at $16,233,324,374, while the trading volume stands at $269,725,152, as per CoinMarktetCap data.

Bearish Trend Line Emerges

Cardano (ADA) has demonstrated a noticeable bearish pattern, shown by a descending trend line, currently hovering around the $0.4740 mark. The cryptocurrency has consistently failed to break through this level, reinforcing the strength of the prevailing downtrend. On the downside, ADA is approaching critical support at around $0.450. A decisive drop below this level could potentially trigger further bearish momentum, with the next key support pegged at $0.4280. ADA's next resistance lies at $0.4920, followed by the psychological mark of $0.500. A decisive close above this level might ignite a rally, potentially propelling ADA towards $0.5250, and even up to $0.5650 should bullish sentiment take hold.

ADA's journey below the 100 simple moving average (SMA) corroborates the pressure from sellers. The Moving Average Convergence Divergence (MACD) is also tilting towards the bearish domain, suggesting increasing momentum on the part of sellers. Complementing this bearish outlook is the Relative Strength Index (RSI), which is currently languishing around 35, giving it more room for a potential downside.

Market Sentiment Echoes ADA's Struggle

The broader market's bearish onset has not spared ADA, showcasing a contraction in global market cap and reflecting in ADA's subdued Year-to-Date (YTD) performance, marked by a -23.69% retrenchment. Santiment's data shows a slight decrease in active ADA wallets over the last three months contrasted with the market's recovery signs. This anomaly could either suggest an undervaluation of ADA or point to a waning interest among investors and users.

According to data sourced from Santiment, there has been a marginal decline of 0.13% in the total number of active Cardano (ADA) wallets over the past three months. This trend positions ADA as one of the few networks experiencing a decrease in wallet activity during this period.

In contrast, Bitcoin (BTC), the leading cryptocurrency by market cap, has witnessed a notable surge in active wallets over the same timeframe. Santiment data reveals a robust growth of 2.6% in the number of non-empty BTC wallets within the past 90 days. Similarly, Dogecoin (DOGE), characterized as the largest memecoin by market capitalization, has seen a remarkable uptick, with non-empty Dogecoin wallets soaring by 13.8% over the preceding three months.

Following a recent network upgrade aimed at enhancing network capacity, attention is keenly focused on the price trajectory of Cardano, with hopes pinned on a potential rebound in the coming months. Analysts have highlighted key price levels, including $0.50 and $0.60, as critical zones indicating potential trend reversals for ADA.