Active addresses on the Cardano network sharply decline, reflecting skepticism among investors regarding the recovery of ADA. This decrease indicates that many traders are leaving the market. With decreasing liquidity, ADA faces difficulties in recovering to important price levels.

The macro dynamics of ADA, however, look more positive. The MVRV Long/Short Difference indicator, which currently stands at 41%, indicates that LTH are significantly more profitable than short-term holders (STH).

Active participation of LTH stabilizes the price of the altcoin and aids in recovery. If these investors maintain their positions, they may offset cautious market sentiment, preventing ADA from falling any further.04698283883693676476048536359335640674597737