- Cardano ($ADA) Drops Below $0.7: Now trading at $0.66, down +25% this month, with weak network activity and bearish technical signals driving further losses.
- Declining User Activity Hurts ADA: DEX trading volume plunged from $31.3M to $2.7M, while active addresses dropped from 113,500 to 25,900, reducing demand for ADA.
- Key Levels to Watch: If ADA fails to reclaim $0.7, next downside targets are $0.65 and $0.512, with a worst-case drop to $0.4517 if selling pressure intensifies.
Cardano ($ADA) is struggling, slipping below $0.7 and continuing its downward spiral. At the time of writing, ADA has lost 5.7% from its intraday high of $0.77, now trading at $0.66. This marks an over 25% decline for the month—a brutal stretch for ADA holders.
ADA’s Bearish Trend—What’s Causing the Drop?
The primary culprit? Slow network activity and a bearish technical setup that could drive further losses in the coming days.
Over the last quarter, ADA has been an underperformer, especially compared to Bitcoin ($BTC). Looking at the daily chart via TradingView, ADA’s price has plunged 32%, while BTC has dropped just 2.3%. That’s a stark contrast, making investors more hesitant about ADA’s short-term prospects.
At one point, the ADA/BTC ratio surged 193% between November and December 2024, peaking at a multi-year high on December 3. But since then? It’s collapsed by 45%, hitting a 12-week low on February 3.
Declining Network Activity—Less Demand for ADA
One of the biggest factors behind ADA’s slump is a sharp decline in network activity. Simply put, fewer people are using Cardano’s blockchain, which means less demand for ADA.
Cardano’s DEX trading volume has dropped significantly, from $31.3 million on December 2 to just $2.7 million by February 23.
Meanwhile, the number of active addresses has nosedived from 113,500 in late November to just 25,900. To make matters worse, the total value locked (TVL) in Cardano’s DeFi ecosystem has plunged from $701.4 million in December to around $366 million today.
Bearish Technical Breakdown—How Low Can ADA Go?
A bear flag pattern was just confirmed as ADA broke below $0.77, a key support level. If the sell-off intensifies, the next downside targets could be $0.65 and $0.512.
If selling pressure accelerates, ADA could even tumble as low as $0.4517, marking a 41.3% drop from its current price.
The Relative Strength Index (RSI) has slipped to 42, signaling increasing selling momentum. However, if ADA reclaims $0.77, it could stabilize and avoid deeper losses—at least for now.
Final Thoughts—More Downside or a Rebound?
Right now, Cardano looks vulnerable, with weak demand and bearish technical signals keeping the price under pressure. If ADA fails to reclaim $0.77, a continued slide toward $0.65 or lower is likely.
Bulls need to step in fast, or this downtrend could deepen further in the coming weeks.
