Cardano’s Decline Might Extend Into 2025 Owing to High Outflows | Airdrop Alert Pro

The price of Cardano (ADA) has been declining steadily, recently hitting a multi-week low of $0.84. This ongoing downward trend reflects broader market challenges and waning investor optimism.

ADA’s inability to hold key support levels further results in its position being weakened through 2025.

Cardano investors are skeptical

The Price DAA Divergence Indicator is currently flashing a sell signal, highlighted Cardano’s situation goes from bad to worse market sentiment. This signal is a combination of falling prices and reduced network participation. This pattern suggests investors are losing confidence and there is uncertainty about ADA’s recovery potential.

Adding to the pessimistic outlook, ADA’s engagement metrics show a shrinking active user base. This drop in interest reflects broader investor hesitancy. The decrease in activity is consistent with the downward trend and suggests market participants are increasingly turning away from the asset as recovery appears uncertain.

Cardano’s Macro Momentum Indicating further weakness, the Chaikin Fund Flow (CMF) indicator hit a two-and-a-half-month low. This trend shows that capital outflows currently dominate ADA market activity, reflecting the lack of new capital entering the ecosystem. The CMF’s prolonged negative value highlights the challenges ADA faces in attracting investor confidence.

The lack of clear price direction forced ADA holders to exit their positions amid increased selling pressure, with the asset risk falling further. Barring significant changes in macroeconomic or network-specific factors, this trend is likely to continue, exacerbating ADA’s woes as outflows continue to dominate.

ADA Price Forecast: Aiming for Recovery

Cardano current price $0.84 has fallen below the key support level of $0.85. Although ADA managed to stay above this level in recent days, it came under pressure again in the past 24 hours, leading to further losses. This decline puts ADA in a precarious position.

If ADA fails to reclaim the $0.85 support, there is a risk of a drop to $0.77. Sustained high outflows could exacerbate this decline, weakening the asset’s price stability. This scenario could exacerbate bearish sentiment and further discourage investor participation.

Instead, withdraw $0.85 as support can be provided ADA and A chance for recovery. A successful flip of this level could see ADA target $1.00 as support once again. However, much of this recovery depends on improving sentiment and a reduction in capital outflows.