Cardano is experiencing conflicting signals as network metrics reach new highs while price pressure mounts. The token posted three consecutive months of gains before declining over 3% in October, with analysts watching the $0.24 support level as a potential turning point.
In early October, Cardano processed 1,780,896 transactions in Epoch 660, exceeding the previous five-year record of 1,566,974 set in November 2021. The network also generated $136.6k in monthly revenue, marking the first time the figure exceeded $100,000.
Typically, such improving fundamentals paired with price weakness would signal undervaluation and attract investment. However, recent activity suggests otherwise. Over five days, large holders sold 110 million ADA tokens, adding selling pressure near key support levels.
More concerning is a sharp decline in network engagement. The number of daily active addresses fell 41.36% to 15,977, compared to 27,248 the previous week. This drop in user participation, combined with whale selling and ongoing price weakness, indicates the market is not treating the pullback as a buying opportunity.
The disconnect between record transaction volume and decreased daily active addresses suggests investors remain cautious about Cardano's near-term prospects, potentially exposing the token to deeper price declines if the $0.24 support level breaks.
