Key facts
- Cardano's price is showing signs of a 'third wave' decline according to technical analysis.
- Analysts project potential price targets around $0.130 and as low as $0.088.
- Cardano Foundation CEO Frederic Gregaard stated that short-term market sentiment does not measure network functionality.
- Gregaard cited decentralized governance, RWA tokenization, and DeFi protocol expansion as evidence of network development.
- The Cardano ecosystem faces challenges including declining DeFi total value locked and 'zombie chain' allegations.
Cardano's price has entered what analysts are describing as a 'third wave' decline, with the ADA token falling to around $0.162 on the 4-hour chart. Technical analysts suggest this pattern could lead to further price drops, with projected targets around $0.130 and potentially as low as $0.088, levels not seen in years. Third waves in Elliott Wave theory are typically the most extended and punishing for long positions. Potential support zones are being watched at $0.1944, $0.1851, and $0.1742. These price movements occur against a backdrop of broader DeFi trends, where Ethereum's declining TVL dominance has drawn attention to chains with higher on-chain activity, exposing ADA's price fundamentals. In contrast to the bearish price outlook, Cardano Foundation CEO Frederic Gregaard published a statement arguing that short-term market sentiment does not accurately reflect the network's functionality. He highlighted ongoing developments such as decentralized governance at scale through CIP-1694, on-chain voting, RWA tokenization landing on the London Stock Exchange, projects supporting farmers in India, and the expansion of DeFi protocols like Bifrost, Pogun, and Sundial. Gregaard emphasized that these verifiable and auditable on-chain fundamentals are not diminishing, even as the price chart tells a different story. He also noted the growth in stablecoin adoption across blockchain networks and specific Cardano projects like Veridian pushing into digital identity infrastructure. The Cardano community is grappling with the divergence between the technical price analysis and the on-chain development narrative.