Last week, trading activity on Cardano’s [ADA] decentralised exchange (DEX) increased significantly, demonstrating the cryptocurrency’s rising appeal among traders. Moreover, a similar pattern has been noticed in total value locked (TVL) on the Cardano network. At the time of writing, the TVL value had reached an amazing $159.68 million, according to Artemis statistics.

Not only that, but Cardano has seen a modest rise in daily transaction count over the last few days. As indicated by the significant increase in whale transaction count, this spike in activity was driven mainly by whale merchants. Furthermore, daily active addresses increased, indicating increased network activity.

While Cardano’s network data seemed stable, ADA’s price performance was not. According to CoinMarketCap, the price of ADA has dropped 3% in the last seven days. ADA is now trading at $0.358, with a market capitalisation of more than $12.4 billion.

Unfortunately, a closer glance at ADA’s daily chart indicates a bleaker prognosis. The ADA Money Flow Index (MFI) and the Relative Strength Index (RSI) have fallen below the neutral zone. The Exponential Moving Average (EMA) Ribbon also shows a bearish crossover, with the 55-day EMA crossing below the 20-day EMA. Furthermore, the Bollinger Bands show that the price of ADA is approaching a squeeze zone.

When all of these issues are considered together, investors should prepare themselves for more downward pressure on the price of ADA. This sentiment is consistent with on-chain measurements since the negative sentiment graph has been high throughout the past week. Furthermore, ADA’s MVRV Ratio is quite low, increasing the likelihood of a further downturn.

Furthermore, Cardano’s development activity has decreased in the last week, indicating that engineers devote less time and effort to network enhancements. Nonetheless, a few favorable indicators stand out. Notably, demand for ADA in the futures market increased on May 26, as seen by the green Binance financing rate. Furthermore, the velocity of ADA remains very high, showing higher utilization of the token in transactions within a specified period.

Although Cardano’s DEX volume, TVL, and network activity show a thriving ecosystem, ADA’s price is declining. Technical signs and on-chain measurements point to a possible drop. Nonetheless, positive elements such as rising derivatives market demand and high token velocity provide a ray of light amid the current market difficulties.