ADA has been weakening recently, and market focus has shifted from short-term pullbacks to deeper issues of confidence. Foreign media reports that since breaking below key moving average support on May 16, selling has dominated, and increased trading activity has not translated into significant buying; instead, it has reflected an increase in positions betting on further declines.
Short positions rose to about three-quarters.
The derivatives market is providing more direct signals. The article states that current short positions account for approximately 75% of ADA's total exposure, indicating that most traders are still betting on a continuation of the downward trend.
The increased trading activity during the decline reinforces this assessment. While increased volume typically indicates renewed capital inflows, this time the new trading activity appears more like the expansion of short positions rather than a move to stabilize prices.
The number of active wallets remained between 12,000 and 20,000.
Despite price pressure, on-chain activity on Cardano has not cooled significantly. Over the past two weeks, the average weekly number of active wallets has remained roughly between 12,000 and 20,000.
This means the network hasn't completely lost users, but the market is more concerned about whether this activity can ultimately translate into real demand and capital inflows. If activity fails to drive usage growth, price pressure is more likely to be interpreted as a continuation of fundamental concerns.
Community skepticism shifts to ecological progress
The article points out that community discontent is rising. Some investors are beginning to question why Cardano is struggling to shake off its weak performance while other public blockchains continue to attract users, developers, and funding.
The debate has thus shifted from the price itself to developer activity, DApp growth, and user adoption. Cardano founder Charles Hoskinson previously stated on social media, "I'm taking a break and we'll talk later," a statement that many holders see as a microcosm of the current sentiment.
Foreign media believe that even if ADA experiences a rebound after its sharp decline, it may not be enough to reverse the situation. For a more sustained recovery, the market needs more than just technical support; it also needs renewed recognition of the Cardano ecosystem's growth.
