The price of Cardano (ADA) has been falling steadily, recently hitting a multi-week low of $0.84. This downward trend reflects broader market challenges, with investors showing reduced optimism.
ADA's inability to hold critical support levels has further contributed to its weakened position heading into 2025.
Cardano investors are skeptical
The Price Divergence (DAA) indicator is currently flashing a sell signal, highlighting Cardano’s deteriorating market sentiment. This signal arises from the combination of falling prices and reduced network participation. These patterns suggest that investors are losing confidence, with uncertainty about ADA’s recovery potential.
Adding to the bearish scenario, ADA’s share metrics reveal a dwindling active user base. This declining interest reflects broader hesitation among investors. The reduced activity is in line with the downward trend, suggesting that market participants are increasingly moving away from the asset as a recovery appears uncertain.
Cardano DAA Price Divergence. Source: Santiment
Cardano’s macro momentum is showing further weakness, with the Chaikin Money Flow (CMF) indicator hitting a two-and-a-half-month low. This trend signals that outflows are dominating the asset’s market activity, reflecting the lack of fresh capital entering the ecosystem. The prolonged negative CMF highlights the challenges the coin faces in attracting investor confidence.
The lack of clear price direction is leading ADA holders to exit their positions, with selling pressure mounting, and the asset at risk of further declines. Unless macroeconomic or network-specific factors change significantly, this trend is likely to persist, exacerbating the asset’s struggles as outflows continue to dominate.
CMF da Cardano. Fonte: TradingView
ADA Price Prediction: Aiming for Recovery
Cardano’s current price has fallen below the crucial support level of $0.85. While the coin has managed to hold above this mark for the past few days, the last 24 hours have seen renewed pressure, resulting in further losses. This decline puts the asset in a precarious position.
If ADA fails to reclaim the $0.85 support level, it risks falling to $0.77. Such a decline could be worsened by ongoing high outflows, which weaken the asset's price stability. This scenario would likely increase pessimistic sentiment and further discourage investor participation.
Cardano Price Analysis. Source: TradingView
On the other hand, reclaiming $0.85 as support could provide ADA with a chance to bounce back. Flipping this level could allow the coin to target $1.00 as a support floor again. However, such a recovery is heavily dependent on improving sentiment and reducing capital outflows.
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