Cardano Records Highest Outflows in Two Months as Downward Trend Continues

Cardano’s ADA has been in a persistent downtrend, reaching a multi-week low of $0.84. This decline reflects broader market difficulties, with waning investor optimism driving the price lower.

Cardano's struggle to maintain key support levels exacerbates its declining market position as we approach 2025. The Price DAA Divergence indicator sends a sell signal, underscoring the deteriorating outlook. This signal arises from falling prices and decreased network activity. These patterns indicate reduced investor confidence, reflecting uncertainty about ADA’s recovery potential.

ADA’s diminishing participation metrics showcase a dwindling active user base. This decline mirrors widespread investor hesitation. As investor interest wanes, the downtrend deepens, and market participants increasingly distance themselves from the asset, doubtful of any imminent recovery.

Further indicating weakness, Cardano’s macro momentum is strained, with the Chaikin Money Flow (CMF) hitting a two-and-a-half-month low. Dominant market outflows highlight a scarcity of fresh capital. This prolonged negative CMF emphasizes ADA’s struggle to regain investor trust.

ADA holders face a lack of clear price direction, prompting position exits. Selling pressure mounts, risking further decline for the asset. Without significant macroeconomic or network shifts, this trend may continue, exacerbating ADA's challenges as outflows persist.

Recently, Cardano dropped below the critical $0.85 support, resting at $0.84. Although ADA had stayed above this threshold, renewed pressure has led to additional losses. Cardano now stands in a precarious situation.

Failing to regain the $0.85 threshold may push ADA to $0.77, compounded by high outflows weakening its price stability. This scenario could deepen bearish sentiment and further deter investor involvement.

Conversely, reclaiming $0.85 support could allow ADA a recovery opportunity. Flipping this level might enable ADA to target $1.00 as a foundational support again. However, success hinges on improved sentiment and reduced capital outflows.