Why is Cardano lowering prices today?

Cardano (ADA) prices showed weakness on March 11th, trading at $0.7250, down 2.5% over the past 24 hours. The weakening of the technical setup and some on-chain signals suggest that the ADA will be able to see a deeper correction in the coming days.

Let's take a closer look at why ADA Price is low performance today.

Ada falls with bitcoin and ether

The weak sentiment was not exclusive to Cardano as the crypto prices also plummeted across the board, with Bitcoin falling to $76,000 on March 10th.

Important takeouts:

• Market leader Bitcoin (BTC) has surpassed 3.6% and 17% last week and month respectively, setting a new four-month low of around $76,600 on March 10th.

• BTC prices have since been recovered above $81,000, but still have a 1.3% decline in the last 24 hours.

• Ether (ETH) has declined 8.6% in the last 24 hours, trading below $2,000 for the first time since November 2023.

• This has resulted in further dragging of Altcoins like ADA, a 41% decrease over the last 90 days compared to a 19% decrease in BTC over the same period.

• The ADA/BTC pairs have decreased by about 20% over the same time frame.

• Crypto market volatility has been exacerbated by macroeconomic uncertainty, and macroeconomic uncertainty has seen a sharp decline in US stocks, along with crypto stocks such as Strategy (MSTR) and Coinbase (COIN) at 10%.

• The lack of short-term positive catalysts, potential tariff wars and fears about the US recession have put headwinds on already abused markets.

Onchain Cardano Activity weakened

Before today's ADA price bearish, network activity declined and locked totals (TVL) fell sharply last week.

• ADA's daily DEX volume fell 67% from $21 million on March 2 to $7.3 million on March 10.

• Similarly, daily active addresses decreased by 59% over the same period.

• Cardano's TVL plummeted from $701.4 million on December 3, 2024, reaching its four-month low of $268 million on February 28.

• This metric has again dropped by 25% over the past seven days.

Buyer fatigue obscures ADA prices

Data from Cointelegraph Markets Pro and TradingView show that on March 2, the ADA meeting pushed its relative strength index (RSI) above 70 over multiple time frames, indicating a “excessive” condition.

• On March 2nd, ADA's RSI reached 90, 84 and 73 in the daily time frame, respectively.

• The acquired RSI means that the rally is likely overheating, meaning buyers are exhausted.

• So traders take this as a signal to sell and lock profits, allowing them to either consolidate the prices sideways or drop further.

• In the case of the ADA, prices have since fallen, recording lower peaks and lower values, as shown in the chart above.

• So the short-term downward goal is between the $0.6472 in the daytime low pressure on March 11 and the $0.5794 range reached February 28th.

Related: Price Analysis 3/10: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PI

• The second area of ​​interest is in the lows of $0.5569 on February 3 and $0.5197 on November 13.

• This demand zone could provide good entry positions for late investors.

This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.