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Cardano ADA continued to trade sideways on Tuesday, struggling to find upside momentum despite occasional market optimism.
Notably, over the past seven days, the cryptocurrency has lost nearly 7%, reflecting broader weakness in major digital assets and cautious investor sentiment.
Meanwhile, according to renowned analyst Ali Charts, the total value locked (TVL) in Cardano’s DeFi ecosystem has never exceeded $1 billion.
“Historically, it was only a fraction of what was locked in competing networks like Ethereum,” He noted the structural disadvantage that Cardano faces in attracting capital compared to its peers.
Even newer blockchains like SUI have surpassed Cardano in user adoption and activity, highlighting the network’s competitive pressure.
 
Additionally, the Cryptorphic analyst noted a recent breakout from the uptrend line that previously supported ADA.
The rejection was close to the upper resistance zone “very clean” and the cryptocurrency now seems to stabilize just below the broken line.
The expert stressed that if the ADA were to quickly reverse this support, the market structure would still favor sellers, leading to further potential declines.
“A small bump may occur at first, but overall, the market is still relying on selling pressure“, he stated.
Additionally, the CryptoPulse analyst noted that Cardano is currently hovering around $0.25, a level that has historically served as strong support.
A successful defense of this zone could trigger a short-term recovery and possibly push the price to the $0.28-$0.30 range.
Elsewhere, challenges in Cardano’s DeFi ecosystem are not limited to market and technical factors.
According to the Angry Crypto Show analyst, Cardano founder Charles Hoskinson revealed that integration costs for Cardano projects often exceed their production costs.
Especially, in one instance, the Midnight Foundation had to cover integration costs out of pocket, totaling more than $10 million.
This financial burden may discourage new developers from building the platform and limit the further growth of Cardano’s DeFi ecosystem.
At press time, ADA was trading at $0.26, up 3.06% in the last 24 hours.
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