Cardano, once promoted as a strong competitor to Ethereum, continues to face significant pressure in the ongoing bear market. However, analysts believe signs are emerging that a bottom could be forming.
According to insights from Santiment, Cardano is displaying classic bottoming signals. Over the past year, active wallets are down about 43 percent on their holdings, while ADA has fallen more than 70 percent since September.
Despite these steep losses, Santiment noted that the deeply negative MVRV ratio, which compares market value to realized value, often signals that an asset is undervalued. This condition is typically associated with what analysts describe as a buying opportunity zone.
They explained that in a market where returns tend to balance out over time, extremely negative average returns can point to a potential reversal. When most traders are experiencing heavy losses, larger investors and more experienced participants often begin to show interest due to the reduced risk associated with entering or increasing positions.
Sentiment Around Cardano Remains Extremely Weak
Adding to the negative outlook, Cardano’s funding rate on Binance shows its highest ratio of short positions compared to long positions since June 2023. This indicates that many traders are expecting further price declines.
Santiment pointed out that such extreme positioning has historically aligned with market bottoms. Funding rates often lead to sudden liquidations, which can push prices in the opposite direction of the majority expectation.
Once ranked among the top ten cryptocurrencies, ADA has now slipped to 13th place, sitting below WhiteBIT Coin and just above Bitcoin Cash.
In the past 24 hours, ADA has risen by about 2.5 percent to reach 0.26 dollars. Even so, it remains nearly 92 percent below its all time high of 3.09 dollars recorded in 2021 and did not come close to that level during the 2025 market peak.
Discussion around Cardano on crypto focused social platforms has been minimal, reflecting the broader lack of enthusiasm. However, it is far from the only altcoin facing heavy losses.
Several Altcoins Also Under Pressure
Solana has declined close to 70 percent from its memecoin driven peak in January 2025, with prices hovering around 90 dollars at the time of writing.
Among meme based assets, Dogecoin has fallen about 87 percent from its peak reached five years ago, while Bitcoin Cash has experienced a similar level of decline.
Chainlink, once considered a leading player in real world asset tokenization, has also struggled to gain traction and remains roughly 83 percent below its 2021 all time high.
Not all altcoins are experiencing the same level of downturn. Tron, Hyperliquid, and UNUS SED LEO have shown relatively stronger performance compared to the rest of the market.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
