ADA loses momentum: multiple pressures hinder recovery

MidsommarWallet · 2026-01-31T11:17:51+00:00

Cardano struggles to regain momentum at $0.37, currently priced at $0.31 with a 4.13% drop. Key factors hindering its rise include technical weaknesses, reduced whale participation, and decreased development activity, creating a negative cycle. To stabilize, Cardano needs increased development, reduced selling pressure, and renewed interest from major holders.

MidsommarWallet

2026-01-31 11:17:51

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Cardano continues to face difficulties in regaining momentum at the $0.37 level. According to recent data, the ADA price is at $0.31, down 4.13% over the past 24 hours, indicating an intensification of bearish pressure. NS3.AI analysts have identified several key factors hindering the cryptocurrency’s upward movement.

Technical Weaknesses and the Departure of Major Investors

The technical picture shows signs of losing traction: bullish divergences on the chart have weakened, and the wave of holder liquidations continues to expand. Simultaneously, there is a significant reduction in demand from whales—large market players who traditionally provided support when testing critical levels. This creates a vicious cycle: every attempt to restore momentum faces increasing selling pressure.

Decline in Development Activity as an Additional Catalyst

Initially, the period of active project development was a positive factor; however, the intensity of work has noticeably decreased. This weakening of fundamental momentum has transformed into increased liquidation pressure during each new rally, further reducing investor confidence.

What is Needed for Stabilization

To achieve a sustainable recovery of upward movement, Cardano requires several factors: increased development activity, a slowdown in the wave of sales, and a restoration of interest from large holders above key resistance levels. Only a coordinated effort of these factors can restore a positive project momentum.

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