Bitcoin (BTC) dominance has gradually been eating away the altcoin market amid heightened demand from institutional investors. If the Hong Kong regulators approve spot Bitcoin ETFs on Monday as predicted, the flagship coin will most likely rally to a new ATH. As a result, Bitcoin dominance will continue in a rising trajectory, which is not the best indicator for anticipated altseason.
Cardano On-chain Activity Dwindles
Cardano (ADA) network, a veteran layer-one (L1) blockchain with dozens of web3 protocols that have locked around $378 million, has faced stiff competition from other smart contract-oriented chains. Worth noting that the Cardano network was recently outshined by the Telegram-backed Toncoin (TON) network and dethroned from the top ten most valuable digital assets.
The woes facing the Cardano network were recently exaggerated after Grayscale announced that it has removed ADA from its Grayscale Digital Large Cap Fund (GDLC) due to low trading volume.
According to the latest market data, Cardano had a daily average trading volume of about $403 million and a fully diluted valuation of around $25 billion.
ADA Price Faces Bearish Pressure
Cardano’s price has been trapped in a falling trend since the week began after reaching a psychological resistance level of around 77 cents. Trading around 56 cents on Friday during the New York session, the altcoin is at a crucial crossroads that will decide the trend for the next few weeks.
According to a popular crypto analyst Peter Brandt, ADA price will likely continue to drop in the coming weeks after forming a head and shoulder (H&S) pattern coupled with a double top. In the midterm, Brandt expects the ADA price to find support around 46 cents.
Read More: Peter Brandt Signals Possible Cardano (ADA) Selloff Before Bullish Rebound