Why is Cardano price down today?

Cardano (ADA) price traded in a second straight daily bearish session on Feb. 24, dropping 5% over the last 24 hours to exchange hands at $0.7386.

A bearish technical setup and several onchain signals suggest that ADA could see a deeper correction in the coming days.

Let’s take a closer look at why ADA prive is underperforming today.

ADA price hits three-month lows against Bitcoin

ADA’s price decline today is part of prevailing bearishness that has seen it underperform Bitcoin (BTC) over the last 90 days, as per data from Cointelegraph Markets Pro and TradingView. 

Key takeaways:

• ADA has dropped approximately 32% over the last three months compared to Bitcoin’s 2.3% decline in their respective US dollar pairs.

• As a result, ADA has trended lower against BTC in 2025, reducing investor confidence in the token.

• High network activity and general positive market sentiment in November 2024 saw the ADA/BTC ratio rally 193% from 0.00000470 on Nov. 6, 2024, to reach a multi-year high of 0.00001380 on Dec. 3, 2024. 

• Since then, the ratio has been on a freefall, dropping 45% to reach a 12-week low of $0.00000554 on Feb. 3. 

• Cardano’s slump can be attributed to diminishing network activity, which leads to reduced demand for ADA tokens within the ecosystem.

Weak onchain metrics underlie ADA’s downside

The bearishness in ADA prices today is preceded by reduced network activity and decreasing total value locked, trending down since late November 2024.

• ADA’s daily DEX trading volume fell from $31.3 million on Dec. 2, 2024, to $2.7 million on Feb. 23, the lowest level since Nov. 7.

• Similarly, daily active addresses decreased by 77% from approximately 113,500 on Nov. 23 to 25,900 on Feb. 23.

• Cardano’s total value locked (TVL) has also plummeted from $701.4 million on Dec. 3, 2024, to around $366 million today. 

The decline in daily active addresses, DEX volume and TVL coincides with ADA’s 22% price drop over the same period.

ADA price validates bear flag pattern

ADA confirmed a bear flag pattern on Feb. 24, when it dropped below the lower boundary of the flag at $0.77. 

What to know:

• ADA is currently testing the support level at $0.73, as shown in the chart below.

• Key resistance levels to watch on the downside are the base of the flag at $0.650 and the Feb. 3 low at $0.512.

• A high volume move below these support levels could accelerate the sell-off toward the technical target of the prevailing chart pattern at $0.430.

• This would represent a 41.5% decline from the current level.

• The relative strength index (RSI) is below the midline, dropping from 48 to 40 over the last four days, indicating increasing bearishness. 

• The RSI’s value of 40 suggests that there is more room for the downside before oversold conditions set in again.

• Conversely, a daily candlestick close above the lower boundary of the flag at $0.77 will invalidate the bearish thesis. 

• If this happens, ADA will likely continue its consolidation within the flag for a few more days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.