Cardano (ADA) Price Drops 8% as Bearish Trend Gains Momentum

Cardano (ADA) price has dropped 8% in the last 24 hours, bringing its market cap to approximately $32 billion. Over the past 7 days, ADA has fallen more than 13%, signaling mounting bearish pressure.

The recent death cross and rising ADX confirm a strengthening downtrend, with the price hovering between key support at $0.87 and resistance at $0.95. If bearish momentum continues, ADA risks further declines, but a recovery above $0.95 could spark a test of levels beyond $1.03.

ADA Downtrend Is Getting Stronger

Cardano ADX has risen sharply to 23.2, up from 10.5 yesterday, indicating that the market has transitioned from an almost nonexistent trend to a more defined one.

The ADX, or Average Directional Index, measures the strength of a trend on a scale of 0 to 100, with values below 20 indicating weak or no trend and values above 25 signaling a strong trend. With ADA ADX now approaching 25, the market is showing signs of increasing momentum.

ADA ADX. Source: TradingView

This shift in ADA’s ADX suggests that the price has moved into a downtrend, as sellers appear to have gained control. The jump from 10.5 to 23.2 in a single day reflects a significant change in the market, likely amplifying bearish pressure. If this trend continues, ADA price could face further downside, as the strengthening trend confirms growing selling momentum.

Cardano Ichimoku Cloud Shows a Bearish Setup

ADA Ichimoku Cloud chart shows a bearish setup, with the price trading significantly below the cloud. This indicates strong downward momentum, as the bearish trend dominates.

The red cloud (Senkou Span A below Senkou Span B) ahead of the current price suggests continued resistance in the near term, reinforcing the possibility of further downside.

ADA Ichimoku Cloud. Source: TradingView

Additionally, the Tenkan-sen (blue line) and Kijun-sen (orange line) have crossed downward, a bearish signal confirming the strength of the current trend.

The price below both lines suggests ADA price is struggling to gain upward traction, and sellers remain in control. If the bearish momentum persists, ADA could face additional declines. However, reclaiming the Kijun-sen or breaking into the cloud could signal the start of a potential reversal.

ADA Price Prediction: Can Cardano Recover Levels Above $1 In January?

Cardano price is currently trading between resistance at $0.95 and support at $0.87, following the formation of a death cross yesterday. If the downtrend continues and $0.87 is breached, ADA could test $0.829 as its next support level.

A loss of this level may open the door to further downside, potentially dropping to $0.76, which represents a 14.6% decline from current levels.

ADA Price Analysis. Source: TradingView

Alternatively, if ADA price regains the bullish momentum seen two weeks ago, it could retest the $0.95 resistance. Breaking above this level could pave the way for a move toward $1.03, with additional targets at $1.11 and $1.16.