- The price of Cardano dropped by 5% before finding some stability around the $0.70 level on Thursday.
- In light of the encouraging CPI and PPI reports, data from CME Group indicates a 99% likelihood of a postponed Fed rate hike.
- Various derivative markets are showing an increase in bearish sentiment among ADA short-term investors.
After experiencing another 5% decline over three consecutive days of losses, Cardano’s price found a level of stability above $0.70. Although numerous ADA derivative trading signals are leaning toward bullish sentiment, the ramifications of the ongoing U.S. trade war overshadow the positive movements in inflation indexes.
Cardano is supported at $0.70 as bearish sentiment increases
After struggling to reclaim the $1 threshold earlier in the week, Cardano has faced significant selling pressure, significantly lagging behind its layer-1 rivals on Thursday. While the overall market sentiment has turned sour, ADA has been particularly impacted.
In contrast, Binance Coin (BNB) remained stable above $573, experiencing slight gains on Thursday following reports of discussions about the Trump family potentially acquiring Binance. Similarly, XRP found robust support above $2.20, buoyed by news of securing a regulatory license to offer crypto payment services to businesses in Dubai.
Cardano price action | ADA
Cardano (ADA) continued its downward trend on Thursday, losing another 5% and stabilizing around $0.70. Despite the easing of inflation in the U.S., traders remain hesitant. Lacking the internal bullish drivers seen in the BNB and XRP markets, ADA became the lowest-performing cryptocurrency among the top ten on Thursday. The recent 5% drop has brought its weekly losses to 40%, further entrenching a prolonged bearish trend.
What’s causing the decline in Cardano’s price?
While other assets like PEPE and BNB recorded gains, Cardano’s decline continues, extending its weekly losses past 40%.
Although the lower inflation numbers appear to support a delayed Fed rate cut, they have also ignited concerns about a prolonged U.S. trade conflict.
FedWatch tool, March 13, 2025
Following the CPI and PPI releases this week, CME Group’s FedWatch tool now shows a 99% probability that the U.S. Federal Reserve will maintain rates during the upcoming FOMC meeting scheduled for March 21.
Instead of triggering increased buying activity, many crypto traders have ramped up selling pressure.
There are concerns that the low inflation figures might lead the Trump administration to maintain or even escalate tariffs on neighboring countries.
This situation could hinder retail traders’ capacity and inclination to invest in riskier assets like ADA.
Odds on Trump lifting tariffs on Canada drops by 18%, March 13
Recent data on Polymarket reveals that the chances of Trump lifting tariffs on Canada before May 2025 have decreased by 18% as of Thursday.
This suggests that rather than buying following the positive CPI and PPI reports, most crypto investors are adopting a more cautious approach, believing that decreasing inflation could afford policymakers the opportunity to keep higher tariffs in place for extended periods.
This sentiment partially explains the additional 5% drop in Cardano’s price on Thursday.
Moreover, speculation that Trump might face challenges in obtaining congressional backing for funding a newly proposed crypto strategic reserve has led some investors to decrease their exposure to ADA in recent days.
Cardano Price Outlook: Death Cross formation may lead ADA to retest $0.50
The outlook for Cardano is bearish following a breach of short-term moving averages, indicating a weakening of bullish momentum.
ADA is trading around $0.70, struggling to recover as selling pressure mounts.
The crossing of the 5-day and 8-day simple moving averages below the 13-day SMA has formed a bearish death cross pattern, solidifying the prevailing bearish sentiment.
This technical formation follows ADA’s inability to maintain its rally above $0.82, heightening the potential for an extended downtrend.
Cardano Price Forecast
The MACD indicator also supports the momentum shift, with the MACD line dipping below the signal line, amplifying the bearish outlook.
The histogram shows a downward trend, suggesting an increase in selling momentum that could lead to prices reaching significant support levels.
If the selling pressure continues, ADA risks falling below $0.70, with the next support level at $0.65.
A more significant decline could unveil the possibility of a test of $0.50, a threshold not seen since late 2023.
Conversely, if bulls manage to reclaim control and push ADA back above $0.73, it may trigger a reversal, challenging the $0.82 resistance once more.
However, with the current bearish crossover and declining MACD, the most probable path appears to be downward, with ADA facing substantial risks towards $0.50.