TLDR
- Cardano (ADA) has dropped over 40% in a week, stabilizing around $0.70 after a 5% decline on Thursday
- Technical indicators show a bearish trend with a death cross formation as moving averages signal weakening momentum
- Despite positive U.S. inflation data, fears of prolonged trade wars are putting pressure on crypto markets
- ADA faces resistance at $0.7050 and $0.7750, with support at $0.65 and potential to test $0.50 if selling continues
- Cardano underperformed other top cryptocurrencies like BNB and XRP, which have found support from positive news
Cardano’s price has been on a downward spiral in recent days. The cryptocurrency is now trading below the $0.72 mark after experiencing three consecutive days of losses.
The digital asset has faced strong selling pressure. This has resulted in a weekly decline of over 40%, making it one of the worst-performing cryptocurrencies among the top ten.
On Thursday, ADA dropped by another 5% before finding some stability around the $0.70 level. This price point is now serving as temporary support for the struggling cryptocurrency.

ADA Price
Technical indicators are painting a bearish picture for Cardano. The price is trading below key moving averages, signaling that downward momentum remains strong.
A concerning development is the formation of a bearish death cross pattern. This occurs when short-term moving averages cross below longer-term ones, typically suggesting continued downward pressure.
The MACD indicator further confirms this negative outlook. The MACD line has crossed below the signal line, indicating increasing bearish momentum in the market.
Cardano’s troubles come despite positive inflation data from the United States. Both Consumer Price Index (CPI) and Producer Price Index (PPI) readings have been favorable this week.
These inflation numbers have increased expectations for a delayed Federal Reserve rate hike. According to CME Group’s FedWatch tool, there’s now a 99% probability that the Fed will leave rates unchanged at its upcoming meeting on March 21.
However, rather than boosting crypto markets, these economic indicators have raised other concerns. Many traders fear that lower inflation could encourage the Trump administration to maintain or even increase tariffs on neighboring countries.
This trade war anxiety is reflected in prediction markets. Data from Polymarket shows that the odds of Trump lifting tariffs on Canada before May 2025 dropped by 18% on Thursday alone.
The broader market sentiment has turned cautious as a result. Many investors are reducing their exposure to risk assets like Cardano in anticipation of prolonged economic tensions.
Technical Analysis
Looking at price levels, Cardano faces immediate resistance around $0.7050. There is also a bearish trend line forming at this level on the hourly chart, adding to the challenge for bulls.
If ADA manages to break above this zone, the next key resistance would be at $0.7520. This represents the 61.8% Fibonacci retracement level of the recent downward move from $0.8170 to $0.6495.
A more substantial barrier exists at $0.7750. Only a decisive close above this level could open the door for a stronger recovery toward the $0.80 region or potentially $0.85.
On the downside, immediate support rests at $0.6880. If this level fails to hold, ADA could retest the recent low around $0.65, with further support at $0.635 and $0.62.
In a worst-case scenario, analysts suggest Cardano could test the $0.50 level. This price point was last seen in late 2023 and would represent a major setback for the cryptocurrency.
Cardano’s performance stands in contrast to some other major cryptocurrencies. Binance Coin (BNB) has maintained stability above $573, even gaining slightly on rumors that the Trump family is considering acquiring Binance.
Similarly, XRP has found support above $2.20. It received a boost from news about securing a regulatory license to offer crypto payment services for businesses in Dubai.
Without such positive catalysts, Cardano has struggled to attract buyers. The lack of project-specific good news has left ADA vulnerable to broader market pressures and technical selling.
There is also concern about potential funding issues for crypto initiatives. Speculation suggests that Trump might face challenges obtaining congressional approval for the proposed crypto strategic reserve, adding another layer of uncertainty for Cardano investors.