Cardano's price has been steadily dropping, experiencing a 27% decrease since the beginning of the month. The altcoin is currently at a multi-month low, facing continued bearish pressure.

Investor confidence in ADA has dwindled, resulting in decreased activity on the network as ADA struggles to find traction.

Active addresses on the Cardano network have fallen to a three-month low of 25,600, the lowest level seen since November 2024, indicating reduced investor interest. This lack of positive momentum has led investors to withdraw, impacting on-chain activity and transaction volumes.

The trend of declining network interactions has been consistent since November 2024, pointing to weakening demand that may further challenge ADA.

Even amidst this decline, Cardano's Mean Coin Age has been on the rise since the beginning of the year, reflecting that long-term holders are holding onto their ADA rather than selling.

This behavior by long-term holders is crucial for Cardano's potential recovery. Their continued confidence in ADA may help stabilize the asset and curb additional losses, potentially paving the way for a price rebound in the near future.

Cardano's current price is at $0.70, having dropped by 27% this month. This level serves as a critical support zone for ADA, and failure to hold it could lead to further declines, strengthening the bearish trend.

A breach below $0.70 might propel Cardano towards $0.62, jeopardizing the falling wedge pattern and aggravating investor losses, making recovery a tougher feat.

On the other hand, if long-term holders uphold their positions, Cardano might bounce back from the $0.70 support level. Breaking above $0.77 could bolster confidence, nullify the bearish scenario, and potentially serve as the catalyst for a broader recovery.