Despite trading above $1 on March 1, Cardano (ADA) nosedived and is now on the verge of extending the less it has faced for weeks. ADA’s initial decline happened after a bearish engulfing candle invalidated the bullish one formed on March 3.
That sudden drawdown dragged Cardano’s price down to $0.86 until it reached $0.67 weeks later.
While the altcoin has bounced to $0.70, the technical setup shows that a recovery to the monthly high is unlikely.
The daily chart shows ADA’s initial correction and recent consolidation have formed a bearish flag pattern. Typically, this pattern signals a potential continuation of the downtrend that seemed to have taken a break.
As shown below, the flagpole formed when Cardano’s price surged to $1.13 before plunging to $0.67. The flag emerged as ADA consolidated between $0.65 and $0.74.
Following this setup, the Moving Average Convergence Divergence (MACD) hovered around the zero signal line. The MACD measures momentum, and the current reading indicates indecision in the market.
Likewise, the MACD’s Exponential Moving Average (EMA) presents a similar bias. In the image below, the 12 EMA (blue) and 26 EMA (orange) are wobbling around the same point, indicating that ADA’s price might find it challenging to break above the overhead resistance at $0.81.
Furthermore, other indicators like the Chaikin Money Flow (CMF) also seem to agree with this thesis. The CMF measures the flow of capital in and out of a cryptocurrency.
When the reading is positive, it indicates rising accumulation, suggesting that the price might increase. A negative reading, on the other hand, signifies selling pressure.
As of this writing, the CMF rating stood at -0.13, indicating that distribution has outpaced accumulation. Due to this position, Cardano’s price might experience a decline much lower than $0.70 if sustained.
Alongside the CMF and bear flag setup, the 20 EMA (blue) and 50 EMA (yellow) further support the likelihood of Cardano’s price extending its decline. Looking at the daily chart, the 50 EMA has crossed above the 20 EMA.
When the longer EMA rises above the shorter one, it is called a death cross. If this position remains the same, ADA might not experience relief soon.
Instead, the altcoin’s market value might decline by 20%. If validated, Cardano’s price might drop to the 0.236 Fibonacci level at $0.56.
Contrary to this prediction, if the 20 EMA flips above the 50 EMA, it will form a golden cross—a bullish signal that could invalidate the bearish outlook.
In this case, ADA could surge to $0.82, with a highly bullish scenario potentially pushing its price toward $0.94.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
