Amid a broader downturn in the altcoins market, Cardano (ADA) has also seen a retracement. In the last 24 hours, ADA has been trading under bearish momentum, with the price fluctuating between an intra-day high and low of $0.633 and $0.59, respectively. At press time, ADA was still in the bearish phase, with the price down 5.29% from the resistance level and exchanging hands at $0.5977. 

Inflows into Cardano Investment Products

Recent data reveals a reversal in Cardano's investment landscape, with a notable $1.1 million inflow into Cardano-centric investment products over the past week. This surge in inflows marks a significant turnaround from the $3.7 million outflows recorded just a week prior, indicating renewed investor interest in ADA-oriented investments. 

Since the beginning of the year, Cardano has attracted approximately $6 million in inflows into ADA-oriented investing products, underscoring its growing prominence among investors seeking exposure to alternative assets.

Despite market fluctuations, Cardano's steadfast commitment to innovation and network expansion has strengthened investor confidence in its long-term viability. The cryptocurrency has showcased commendable performance in the first quarter of 2024, with its price reaching $0.80 in March, driven by strong developer activity. 

Cardano has maintained its momentum and emerged as a leader in weekly GitHub engagements, surpassing giants like Ethereum in developer activity. Insights from marketing intelligence firm IntoTheBlock confirm Cardano's status as the most actively developing crypto blockchain, outpacing even Ethereum in cumulative developer contributions.

Challenges and Sustainability Concerns

However, despite its positive trajectory, Cardano faces challenges regarding sustainability. Stakeholders emphasized the need to increase the number of transactions on the Cardano blockchain to ensure its long-term viability. CEO of NMKR, Patrick Tobler, argues that running stake pools could become unprofitable if there isn't a significant increase in transactions. 

While Cardano founder Charles Hoskinson acknowledges the importance of increasing transactions, he believes sustainability depends on other factors such as partnerships, increased transaction volume, and ADA value appreciation. Finding a balance between transaction growth and maintaining stake pool profitability remains crucial for Cardano's sustainability.

Technical Analysis and Price Movement

Technical analysis indicates that ADA's price is struggling below the $0.650 resistance against the US Dollar.  With the Relative Strength Index (RSI) moving south below its signal line and the Rate of Change (ROC) in the negative region, the bearish strength is growing. Concurrently, the recent downside correction from the $0.6840 zone suggests a potential risk of a downside break below the $0.583 and $0.569 range. ADA price is currently trading below $0.584 and the 55 simple moving average (4 hours), indicating bearish momentum in the short term.

ADA/USD 24-hour price chart (source: TradingView)

Immediate support levels lie near the $0.580 and $0.569 levels, with further downside potential towards $0.530 in case of additional losses. On the upside, ADA could resume its rally if it clears the $0.6260 and $0.650 resistance levels, with potential targets at $0.6840, $0.720, and $0.750.