Cardano (ADA) has been struggling to regain momentum after a significant drop in its value. The altcoin has faced a 50% decline from its December 2024 peak of $1.30, leaving many investors questioning its recovery prospects. As of now, ADA’s price action is at a pivotal level, but demand remains weak, leaving the future of the cryptocurrency uncertain. Let’s take a closer look at the current price action and future prediction for ADA.

Recent Market Movements and Bearish Pressure

Cardano has been experiencing ongoing bearish pressure, with ADA’s weekly losses surpassing 12%. This is largely due to Bitcoin’s (BTC) price drop below the $90,000 mark, which has had a negative impact on altcoins across the market. Even the statement of the Grayscale Cardano ETF, which many had hoped would boost ADA’s price, did not create significant demand. This reflects the broader macroeconomic uncertainty that is currently weighing on both the altcoin market and cryptocurrencies as a whole.

Despite this, there was a slight positive development in the form of a 2% drop in Bitcoin dominance. Bitcoin dominance refers to Bitcoin’s market share relative to the rest of the cryptocurrency market. A decrease in dominance suggests that altcoins, like ADA, could potentially experience some relief if Bitcoin’s price stabilizes. However, this improvement hasn’t yet translated into significant upward movement for Cardano.

ADA Hits a Pivotal Level: Support or Further Decline?

At the time of writing, Cardano was trading at $0.69, a critical level that has acted as support in the past. This price point coincides with a bullish order block, which historically has been a region where buyers have stepped in. This suggests that ADA may find some relief here if demand picks up. However, technical indicators are mixed. The daily Relative Strength Index (RSI) for ADA is currently below neutral levels, indicating that demand remains weak and sellers still hold the upper hand.

On the other hand, the Chaikin Money Flow (CMF), an indicator that tracks the money flow into and out of a particular asset, has turned positive. This suggests that there are some improvements in inflows, which could signal that buyers are beginning to show interest at these lower levels. If this positive momentum continues, ADA bulls may be able to defend the $0.69 support level, especially if Bitcoin experiences a recovery.

However, if the selling pressure persists, ADA could see further declines, with the next potential support level at $0.56. This is considered a key zone that has acted as a “cool-off” point after previous market surges. If ADA breaks below $0.69 and continues to slide, $0.56 will be the next crucial level to watch.

Weak Speculative Interest in ADA

One concerning aspect for ADA’s short-term outlook is the sharp decline in speculative interest. In January 2025, the futures market for Cardano saw speculative interest of $1.48 billion. However, this figure has since dropped to $555 million, representing a decrease of over 60%. This drop in open interest suggests that investors are losing confidence in Cardano, which is a bearish signal for the cryptocurrency.

From a liquidity perspective, there are several key levels to watch. The first is $0.78, which aligns with the mid-range of the current downtrend channel. If ADA experiences a brief recovery, this level could act as resistance. Further down, the $0.75, $0.70, and $0.62 levels are also important, as they coincide with areas of liquidity. If ADA sees a liquidity sweep, it could fluctuate between these key levels, especially if Bitcoin’s price remains uncertain.

Conclusion: A Waiting Game for ADA

In conclusion, Cardano’s future price movements are highly dependent on broader market conditions, particularly Bitcoin’s performance. While there are some positive signs, like the Chaikin Money Flow turning positive, ADA’s weak demand and speculative interest suggest that the cryptocurrency may struggle to recover in the short term. If Bitcoin fails to show strength and the broader market remains bearish, ADA could see further declines, with $0.56 being the next key support level to watch. However, if buyers step in and Bitcoin’s dominance continues to decrease, ADA could experience a reversal, making the $0.69 level crucial for determining whether a recovery is possible.