The article states that Cardano (ADA) has experienced a downward trend in price over the past few days, with a 3% fall since Monday. On-chain data suggests that Cardano may face a price correction of up to 21% in the near term. The Network Value to Transactions (NVT) ratio for Cardano is currently at its highest level since February 2023, indicating potential overvaluation. The combination of falling price and rising NVT ratio reflects negative market sentiment. The declining Relative Strength Index (RSI) further supports this bearish outlook, indicating decreasing buying pressure and potential for further price decline. Cardano is currently testing the support level at $0.3479, and a breakdown of this support could lead to a 21% price drop to $0.27. On the other hand, if buying activity picks up and the support line is defended, Cardano may initiate a bullish trend towards $0.47.



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