TLDR
- Cardano (ADA) has been in a 3-day losing streak, declining over 40% in the past week
- ADA stabilized around $0.70 after a 5% decline on Thursday
- Technical indicators show bearish momentum with resistance at $0.7050 and support at $0.650
- U.S. inflation data suggests a 99% chance of Fed keeping rates unchanged at March 21 meeting
- Concerns about extended U.S. trade war tariffs continue to pressure cryptocurrency markets
Cardano has struggled to maintain its position in the cryptocurrency market over the past week. The digital asset experienced a steep decline, dropping more than 40% in weekly value. On Thursday, ADA fell another 5% before finding some stability at the $0.70 price level.
The downward trend began earlier in the week. Cardano failed to reclaim the important $1 mark, which triggered a wave of selling. This led to three consecutive days of losses.
ADA’s price movement shows it trading below both the $0.720 level and the 100-hourly simple moving average. This positioning indicates continued bearish pressure on the cryptocurrency.
The decline follows a similar pattern to other major cryptocurrencies. Both Bitcoin and Ethereum saw price decreases during the same period. However, ADA has underperformed compared to its layer-1 blockchain competitors.
Technical analysis reveals a bearish trend line forming with resistance at $0.7050 on the hourly chart. This pattern suggests traders might face challenges pushing the price higher in the short term.
Showing signs of recovery
ADA did show some signs of recovery after testing the $0.650 zone. A low point was established at $0.6495, after which the price began to climb. It managed to move above $0.6950 and even briefly surpassed the $0.70 mark.
Looking at resistance levels, Cardano may face hurdles near $0.7050. Additional resistance appears at $0.7520, corresponding to the 61.8% Fibonacci retracement level. The next key resistance stands at $0.7750.
Should ADA overcome these resistance levels, especially closing above $0.7750, a stronger rally could begin. In this scenario, prices might target the $0.80 region or potentially reach $0.850 in the near term.
On the support side, immediate backing exists near $0.6880. If this level fails to hold, the next major support appears at $0.650. Breaking below this could lead to testing $0.6350, with a further support level at $0.620.
The MACD indicator for ADA/USD shows declining momentum in the bearish zone. Meanwhile, the Relative Strength Index (RSI) remains below the 50 level, indicating bearish sentiment continues to dominate.
Market Factors Affecting Cardano
Economic factors are playing a major role in Cardano’s current price situation. Recent U.S. inflation data has produced mixed market reactions rather than clear direction.
The Consumer Price Index (CPI) and Producer Price Index (PPI) readings this week were positive. These indicators suggest easing inflation in the American economy. According to CME Group’s FedWatch tool, there’s now a 99% probability that the Federal Reserve will leave interest rates unchanged at its March 21 meeting.
Despite these seemingly positive economic signals, crypto traders have not responded with increased buying. Many market participants have instead intensified selling pressure on assets like Cardano.
The main concern appears to be the potential extension of U.S. trade wars. Lower inflation readings might give the Trump administration room to maintain or even increase tariffs on neighboring countries. Data from Polymarket shows the odds of Trump lifting tariffs on Canada before May 2025 dropped by 18% on Thursday.
These tariff concerns could impact retail traders’ ability and willingness to invest in risk assets like Cardano. With economic uncertainty looming, many investors are taking a cautious approach rather than increasing exposure to cryptocurrencies.
Additional market speculation surrounds Trump’s proposed crypto strategic reserve. Some investors worry about potential difficulties in obtaining congressional approval for funding this initiative. This concern has led some traders to reduce their ADA positions in recent days.
Unlike competitors such as Binance Coin (BNB) and XRP, Cardano lacks internal bullish catalysts to counter the broader market negativity. This absence of positive news specific to ADA has contributed to its underperformance compared to other top cryptocurrencies.
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