- Cardano Drops 12% as Bitcoin Weakens: ADA has fallen 50% from its December peak, currently testing crucial support at $0.69, with a potential dip to $0.56 if selling pressure continues.
- Futures Market Signals Bearish Sentiment: Speculative interest in ADA has plunged over 60%, dropping from $1.48B in January to $555M, indicating investor hesitation.
- Key Liquidity Levels to Watch: ADA may fluctuate between $0.78 and $0.62, depending on Bitcoin’s ability to stabilize, with a potential liquidity sweep influencing short-term movement.
Cardano ($ADA) is feeling the heat, logging weekly losses of over 12%, as bearish pressure continues to mount. This downturn followed Bitcoin’s ($BTC) drop below $90K, amplifying uncertainty across the market.
Even the acknowledgment of Grayscale’s Cardano ETF filing failed to stir much demand, reinforcing macro instability as a key risk factor for ADA and altcoins in general.
There was, however, a small silver lining—Bitcoin’s dominance dipped 2%, which could offer relief to altcoins like ADA. But does the price action support a recovery?
Cardano Hits Pivotal Support Level—What’s Next?
At the time of writing, ADA is down 50% from its December peak of $1.30, firmly locked in a multi-month downtrend channel. Currently, price action is retesting the channel’s lower boundary, which also serves as a bullish order block at $0.69.
Technical indicators, however, are sending mixed signals. The daily RSI remains below neutral, signaling weak demand. But Chaikin Money Flow (CMF) has flipped positive, suggesting that capital inflows are improving.
In simple terms, ADA bulls may attempt to defend the range low if BTC stabilizes. However, if the sell-off continues, ADA could dip further to $0.56, marking the first cool-off zone post-U.S. election rally.
Speculative Interest in ADA Plunges Over 60%
Cardano’s futures market isn’t looking great either. Speculative interest has dropped more than 60%, shrinking from $1.48B in January to $555M at press time. This signals that investors are pulling out of the derivatives market—a clear bearish indicator.
From a liquidity standpoint, there are four major liquidity zones to track: $0.78, $0.75, $0.70, and $0.62.
The $0.78 level aligns with the channel’s mid-range, while $0.62 coincides with the range lows. If liquidity sweeps occur, ADA may fluctuate between these levels, particularly if Bitcoin struggles to establish a clear trend.
Final Thoughts—Recovery or More Downside?
Cardano sits at a make-or-break moment. If bulls hold the line at $0.69, there’s a chance for consolidation and eventual upside. However, if Bitcoin remains weak, expect further declines toward $0.62 or even $0.56.
With futures market interest drying up and mixed technical signals, the next few days will be critical for ADA’s short-term trajectory.
