Cardano Struggles as Price Drops 50% Since December
The Most Important Points at a Glance
Cardano (ADA) has lost 50% of its value since its December peak. Despite the approval of a Grayscale Cardano ETF, demand remains weak. Technical indicators show mixed signals, while Bitcoin dominance has slightly declined. The next key price levels are $0.69 as support and $0.56 as a possible low.
Cardano in a Downtrend – Can the Price Stabilize?
At the time of analysis, ADA was trading at $0.69, 50% below its December high of $1.30. The price is moving within a multi-month downward trend channel. The current price action is testing the lower boundary of this channel, which also serves as a potential support zone.
Technical indicators provide conflicting signals. The Relative Strength Index (RSI) is below the neutral range, indicating weak demand. At the same time, the Chaikin Money Flow (CMF) shows positive values, suggesting improved capital inflows. If Bitcoin (BTC) recovers, ADA bulls may attempt to defend the $0.69 support. Otherwise, continued selling pressure could push the price down to $0.56.
Weak Demand in the Futures Market
The derivatives market also shows a bearish trend. Open interest – a measure of the capital invested in ADA futures – has dropped from $1.48 billion in January to $555 million. A decline of over 60% suggests that investors are pulling capital out of the market, which can be seen as a bearish signal.
Key Liquidity Zones in Focus
From a liquidity perspective, there are four critical price levels: $0.78, $0.75, $0.70, and $0.62. The $0.78 level corresponds to the midpoint of the current downward trend channel, while $0.62 aligns with the lower boundary of the channel. If a liquidity movement occurs, the ADA price could fluctuate between these levels, especially if Bitcoin does not provide a clear direction.
Our Assessment
Cardano is at a critical point. The current support at $0.69 could hold in the short term, provided Bitcoin does not decline further. However, a sustained increase is only possible if demand returns. If selling pressure continues, a drop to $0.56 is realistic. Investors should closely monitor Bitcoin’s development, as it is likely to have a significant impact on ADA’s direction.
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| Symbol | ADA |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
|
| Cons |
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| Further practical applications | |
| Price | $0.67 |
| 24h % | -2.03 % |
| 7d % | -15.02 % |
| 30d % | -30.54 % |
| 60d % | -25.00 % |
| 1y % | 7.48 % |
| Market Cap | $23,869,103,105.00 |
| Max. Supply | 45,000,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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