Altcoin News: Why Is Cardano (ADA) Price Down Today? Bearish Signals Point to Further Decline

ADA Falls 5% as Bearish Momentum ContinuesCardano (ADA) is struggling to hold key support levels, with its price dropping 5% on February 24 to trade at $0.7386. The ongoing decline is part of a broader bearish trend, as several technical and on-chain indicators suggest further downside pressure for the top-ten cryptocurrency.ADA Underperforms Bitcoin, Hits Three-Month LowsADA has been in a steady downtrend against Bitcoin (BTC) over the last three months. ADA has dropped 32% in value during this period, compared to Bitcoin’s mild 2.3% decline in USD terms, according to Cointelegraph Markets Pro and TradingView data.Cardano’s ADA/BTC ratio surged 193% in late 2024, peaking on December 3, but has since collapsed 45%, hitting a 12-week low of 0.00000554 BTC on February 3. This declining performance against Bitcoin has led to reduced investor confidence in ADA.Weak On-Chain Metrics Fuel ADA's DeclineOne of the key reasons behind ADA’s price drop is declining network activity, which has led to lower demand for ADA tokens within the Cardano ecosystem.Daily DEX Trading Volume: Dropped from $31.3 million (Dec. 2, 2024) to $2.7 million (Feb. 23, 2025), marking its lowest level since November 7.Daily Active Addresses: Fell 77%, from 113,500 (Nov. 23, 2024) to 25,900 (Feb. 23, 2025).Total Value Locked (TVL): Declined from $701.4 million (Dec. 3, 2024) to $366 million, reflecting a significant drop in DeFi activity on Cardano.These weak on-chain signals coincide with ADA’s 22% price decline over the same period, reinforcing bearish sentiment.ADA Price Confirms Bear Flag Breakdown – More Losses Ahead?ADA has confirmed a bear flag pattern, signaling the potential for a deeper correction. The token dropped below the flag’s lower boundary at $0.77 and is now testing support at $0.73.Key Levels to Watch:Immediate Support: $0.73Critical Support Zones: $0.650 (flag base) and $0.512 (Feb. 3 low)Bearish Target: A confirmed breakdown could push ADA toward $0.430, representing a 41.5% decline from current levels.The Relative Strength Index (RSI) is trending lower at 40, suggesting more room for downside movement before reaching oversold territory.Can ADA Invalidate the Bearish Thesis?For ADA to regain bullish momentum, it needs to close above $0.77 on the daily chart. If that happens, consolidation within the flag pattern could continue, delaying further downside pressure.However, unless Cardano sees a surge in network activity and investor confidence, ADA remains at risk of further losses in the coming days, according to Cointelegraph.