Due to the dominance of bearish signals, Cardano (ADA) price has dropped 18%

Click the avatar to watch live and catch the bull market dynamics

The price of Cardano (ADA) has fallen by 30% in a month and about 18% in the past two weeks. Its market capitalization has now dropped to $27 billion, reflecting the overall weakness of altcoins.

Technical indicators (including the rising ADX and bearish Ichimoku Cloud setup) suggest that ADA's current downward trend is strengthening. The key support level is at $0.519, with potential downside space at $0.32. ADA needs a strong reversal to reclaim $0.78 and push towards the $1 mark.

Cardano's ADX has surged from 11.2 three days ago to 44, indicating a sharp increase in trend strength. Since the ADX measures trend strength rather than direction, this leap confirms that ADA's current price trend is gaining momentum.

Given that ADA is in a downward trend, the rise in ADX indicates that bearish pressure is increasing rather than decreasing.

An ADX value above 25 indicates a strong trend, while an ADX value above 40 indicates a more dominant market trend.

ADA's ADX is currently at 44, and the persistent downward trend seems to be established, with little chance of reversal unless there is a significant change in buying activity. If selling pressure continues, ADA may face further declines, with lower support levels becoming the focus.

The ADA Ichimoku Cloud shows a bearish scenario

The Cardano Ichimoku Cloud chart confirms a strong bearish trend. The price is far below the cloud, which is a clear sign of downward momentum. The future cloud also turns bearish, indicating that selling pressure may persist.

Additionally, the Tenkan-sen (blue line) remains below the Kijun-sen (red line), reinforcing the short-term bearish outlook.

Click the avatar to watch live and catch the bull market dynamics.