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Cardano price faces downside risk amid weak network activity
Crypto Trends

Cardano price faces downside risk amid weak network activity

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Cardano price has moved into a local bear market and is at risk of further downside as network activity and social dominance wane.

Cardano (ADA) slumped to $0.668 at last check on Saturday — down by 22% from its highest point in May. It is hovering at its lowest point since May 6.

On-chain metrics show that Cardano may be on the verge of more downside. Santiment data shows its social dominance score has moved to 0.792%, down from 1.8% in May. This metric means that fewer people are discussing Cardano on social media platforms like X and Reddit. 

Another metric shows that the daily active addresses have fallen in the past few weeks. There were 21,565 addresses on Friday, down from over 60,500 in May, a sign that fewer people are interacting with it. 

Further, the closely watched mean dollar invested age (MDIA) has plunged, a sign that old coins are being moved. The 365-day MDIA figure has tumbled to minus 425, down from 62 in September last year. 

The network realized profit/loss has moved negative to the negative zone, signaling that buyers have started to capitulate. 

Finally, the Market Value to Realized Value or MVRV ratio has turned negative, signaling that Cardano has become a bargain. However, the MVRV ratio of minus 0.019, is higher than it was in April when the coin bounced back.

ADA on-chain metrics | Source: Santiment

Apart from on-chain metrics, more data shows that Cardano’s ecosystem is not doing well.

The total value locked in its decentralized finance ecosystem has dropped to $387 million, while the total supply of stablecoins is just $30 million.

These metrics are much lower than Sonic and Unichain, which launched earlier this year.

Cardano price technical analysis

ADA price chart | Source: crypto.news

The daily chart shows that the Cardano price has plunged from $1.317 in December to $0.66 today. It has moved below the descending trendline that connects the highest swings since December. 

Most recently, it formed a small double-top pattern at $0.845, and has moved below its neckline at $0.713, its lowest point on May 19.

It has also moved below the 50-day and 200-day Weighted Moving Averages. Therefore, the coin will likely continue falling as sellers target the next key support at $0.513, its lowest point in April, down by 23% from the current level.



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Pi Network sheds 15% in a week, technical indicators show price could drop further
Crypto Trends

Pi Network dips 15% as charts signal further downside

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Pi Network is trading at $0.6894 at the time of writing, marking a 6% daily loss and a 15% slide over the past 7 days.

After reaching a peak of almost $3 in February, Pi Coin (PI) has now dropped more than 75%  and is struggling to maintain any lasting momentum. May began on a promising note for Pi holders. The price surged almost 200% in a matter of days, reaching a local high of $1.67. 

But what followed was a steep and steady decline that erased most of those gains. As traders weigh in on their next move, PI is hovering just above a crucial support level and is trapped in a narrow weekly range between $0.688 and $0.816.

Trading volume has increased despite the decline, rising more than 42% in the past day to over $158 million, suggesting increased market activity. 

On-chain data, however, show an increase in exchange inflows, indicating that more tokens are being positioned for sale. Selling pressure is anticipated to continue as 263 million PI are scheduled to unlock in June, followed by 233 million in July and 132 million in August.

From a technical standpoint, the trend is decisively bearish. All of the major moving averages, such as the 10, 20, 50, and 100-day EMAs and SMAs, are above the price. After a spike in volatility in early May, the Bollinger Bands are tightening. PI is now trading near the lower band, indicating that selling pressure is still present.

Pi Coin price analysis. Credit: crypto.news

Momentum indicators support the bearish view. The moving average convergence divergence is still negative and below the signal line, suggesting that the downward trend might continue. Furthermore, the awesome oscillator, which gauges market momentum by looking at recent price movements, is in the red, indicating that the downside pressure is still present.

At 43.6, just below neutral territory, the relative strength index shows a weak level of bullish conviction. Meanwhile, the stochastic RSI sits near 2.77, deeply oversold, yet without any reversal signal, this alone does not justify a long position.

The average directional index is currently at 29.9, just below the crucial 30 level. The ADX shows the strength of the trend but not its direction. In this case, it suggests that although the downtrend is still quite strong, it might be nearing its end. 

A persistent breach above the $0.75–$0.78 range may cause sentiment to change. If not, $0.60 and $0.50 are the next significant support zones. The path of least resistance is still downward as more tokens come into circulation and the demand fails to keep up supply. 

Pi Network is attempting to create long-term value despite these short-term risks. The recently launched $100 million Pi Network Ventures fund is focused on projects with real-world applications in e-commerce, fintech, gaming, and artificial intelligence. However, until fundamentals translate into increased demand, the technicals remain weak.



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