Cardano is experiencing downward pressure from large holder selling and weakening network participation. The token has declined nearly 12% over the past week, following strong September performance.
According to analyst data, large holders sold more than 110 million ADA in the past five days, adding to selling pressure as the token approaches key support levels. Simultaneously, daily active addresses on the network dropped 41.36%, falling from 27,248 to 15,977, indicating reduced user engagement.
Analysts are watching the $0.24 support level closely. A break below this threshold could push ADA toward $0.21, near the lower boundary of its rising channel. However, other analysts maintain a more optimistic outlook, pointing to the $0.2887 level as key on the two-week chart.
Despite declining daily active addresses, Cardano achieved a notable milestone. During Epoch 660, the network processed 1,780,896 transactions, surpassing its previous record of 1,566,974 from November 2021. This represents the first transaction record in five years, with an average of 83.83 transactions per block.
Beyond price action, the Cardano ecosystem has advanced with two developments. The Cardano Foundation introduced CIP-0113, a new token standard for regulated assets that allows issuers to set holder restrictions and freeze or seize holdings when necessary. The standard aims to ease adoption of bonds and other assets by banks and fund managers.
Additionally, the foundation's digital identity project, Veridian, has transitioned to an independent Swiss company and tokenized its shares on Cardano. The project plans to develop identity tools for businesses, governments, and AI agents.
