Cardano (ADA) has been facing challenges in maintaining its price due to a lack of growth in a bearish market environment. Short-term holders (STHs) are increasingly opting to sell their positions rather than wait for a potential market recovery. The MVRV Long/Short Difference for Cardano has declined to -18%, the lowest in five months, indicating that STHs are potentially looking to cash in on profits, the highest since November 2024.

The selling actions of these holders could worsen the downward pressure on Cardano's price as they lock in gains. The current sentiment in the market may further weaken Cardano’s support levels and increase ADA's price volatility. Additionally, the Chaikin Money Flow (CMF) indicator has been on a continuous decline since November 2024, indicating outflows dominating inflows and reflecting decreased investor confidence. This cautious behavior among investors is keeping them away from Cardano.

At its current price of $0.61, just below the critical resistance level of $0.63, Cardano has been experiencing a persistent decline for almost a month. If conditions do not improve, Cardano may find it challenging to regain lost ground and break through the $0.63 resistance. In a worsening market scenario, Cardano's price could drop further towards the $0.57 support level, deepening losses for investors and making recovery more challenging. However, with improved market conditions and restored investor confidence, Cardano could reverse its bearish trend. Breaking the $0.63 resistance level and targeting $0.70 could signify a significant positive shift in momentum for Cardano.