Cardano’s (ADA) price has dropped 30% in a month and roughly 18% in the past two weeks. Its market cap has now fallen to $27 billion, reflecting the broader weakness in altcoins.

Technical indicators, including a rising ADX and a bearish Ichimoku Cloud setup, suggest that ADA’s current downtrend is strengthening. With key support at $0.519 and a potential downside of $0.32, ADA needs a strong reversal to reclaim $0.78 and push toward the $1 mark.

Cardano ADX Shows the Current Downtrend Is Very Strong

Cardano ADX has surged to 44, up from just 11.2 three days ago, signaling a sharp increase in trend strength. Since ADX measures the strength of a trend without indicating direction, this jump confirms that ADA’s current price movement is gaining momentum.

Given that ADA is in a downtrend, this rising ADX suggests that bearish pressure is intensifying rather than weakening.

ADX values above 25 indicate a strong trend, while readings above 40 suggest an even more dominant market move.

With ADA’s ADX now at 44, the ongoing downtrend appears well-established, making a reversal less likely unless a significant shift in buying activity occurs. If selling pressure continues, ADA could face further downside, with lower support levels coming into focus.

ADA Ichimoku Cloud Shows a Bearish Scenario

Cardano Ichimoku Cloud setup confirms a strong bearish trend. The price is trading well below the cloud, which is a clear sign of downside momentum. The future cloud is also turning bearish, suggesting that selling pressure is likely to continue.

Additionally, the Tenkan-sen (blue line) remains below the Kijun-sen (red line), reinforcing the short-term bearish outlook.

For ADA to reverse this trend, it would need to break back above the cloud and establish it as support. However, with the Chikou Span (green line) trailing far below the price action and the cloud widening, the bearish momentum remains strong.

Unless buying volume increases significantly, ADA price could struggle to regain key resistance levels and may continue facing downside risk.

ADA Price Prediction: Can Cardano Reclaim $1 This Week?

Cardano price is currently facing resistance at $0.78 and support at $0.519. If the ongoing downtrend persists and ADA loses this support, the next major level to watch is $0.32, which would mark its lowest price since late November 2024.

Given the strong bearish momentum, breaking below $0.519 could accelerate the decline.

However, if the broader altcoin market starts recovering, Cardano could attempt to reclaim $0.78.

A successful breakout above this level could push it toward $0.87, and if the momentum continues, ADA could reach $1, representing a potential 40.8% gain. For this scenario to play out, buying pressure would need to increase significantly.

According to Prime Minister Justin Trudeau, tariffs between the US and Canada have been postponed for 30 days. Bitcoin recovered from its earlier plunge to $92,000, and MicroStrategy’s stock price rebounded 4%

The proposed trade war between the US and its closest neighbors has apparently been resolved (or delayed), but the tariffs against China still stand. This is an active and underreported component of possible future market actions.

Canada and US Halt Tariffs

The threat of US tariffs against Canada, Mexico, and China has played a chaotic role in crypto markets today. Tech stocks were already wobbling due to DeepSeek, but the implementation of tariffs caused a reported $2 billion wipeout. These reports may have underestimated the real damage, which could have gone as high as $10 billion.

Earlier on Monday morning, Bitcoin dipped to $92,000, and crypto-related stocks saw notable liquidations. Notably, MicroStrategy’s MSTR lost 8% following tariff announcements.

However, Mexican President Claudia Sheinbaum reached an agreement with Donald Trump, postponing a possible trade war. According to an announcement from Prime Minister Justin Trudeau, Canada has reached a similar agreement that will pause all tariffs for 30 days.

“I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Proposed tariffs will be paused for at least 30 days while we work together,” he said.

In other words, these tariffs have caused substantial trauma to the markets, but Canada and Mexico have already negotiated a deal. This is a particular relief because Canada is well-integrated in the crypto economy and may play an outsized role in crypto values.

Since the agreement, however, all the main “Made in USA” cryptocurrencies have bounced. Bitcoin and XRP, in particular, have mostly recovered from earlier liquidations. At the time of reporting, BTC surged back to $102,000.

Crypto Stocks Bounce Back

MicroStrategy and other Bitcoin mining stocks, such as MARA, have further substantially recovered from earlier losses following Canada’s deal on tariffs.

Earlier today, MicroStrategy surprised the market by breaking its 12-week streak on Bitcoin purchases. Michael Saylor did not directly comment on the reason for this pause, but its stock dropped substantially today.

However, this incident is far from a case of “all’s well that ends well.” Simply put, the US threatened one of its closest allies with major tariffs and severely damaged their working relationship.

That will certainly have consequences. It is unclear how this incident may impact US-Canada trade, but there are several worrying signs. Also, if the tariffs are enforced again after a month, a similar impact on the crypto market could be expected.

Additionally, while Canada and Mexico have negotiated with Trump, China has been quiet. The PRC has clearly demonstrated its recent ability to disrupt the US stock market, as illustrated by DeepSeek. Its response could be pivotal.

Crypto narratives are undergoing major shifts this week, with AI tokens, Real-World Assets (RWA), and meme coins all seeing significant corrections. The AI sector, once a top-performing category, has seen its market cap drop 42% in the past month, with major tokens like FET and RENDER extending their losses.

Meanwhile, the RWA sector has fallen from $72 billion to $55.5 billion in just three days, though regulatory clarity in the US could provide long-term support. Meme coins have also taken a hit, with the top 10 largest tokens all down at least 22% in the last week.

AI Tokens

The artificial intelligence sector has been one of the hardest-hit areas in the crypto market over the past month. After reaching a peak market cap of $60 billion on January 6, it has now fallen to $32.8 billion, reflecting a sharp decline.

Some of the biggest AI tokens have taken heavy losses in the past seven days, with FET down 32.2%, RENDER dropping 27.21%, and VIRTUAL losing 35%.

The correction, which began roughly two weeks ago with DeepSeek’s impact, has extended across the sector, pushing many AI tokens to multi-month lows.

With the AI crypto market cap down nearly 42% in 30 days, this week could be crucial in determining whether these assets stabilize and get ready for a rebound or face further downside.

Real-World Assets (RWA)

The Real-World Assets (RWA) sector has experienced a sharp decline, with its market cap dropping from $72 billion on January 31 to $55.5 billion in just three days.

Despite this downturn, RWA remains a significant asset class within crypto, currently comprising nine projects with market caps above $1 billion. Key players such as Chainlink, Avalanche, Hedera, Mantra, and Ondo continue to drive the sector’s development.

Although the recent correction has impacted RWA valuations, the sector continues to be one of the most interesting crypto narratives. It stands to gain from potential regulatory advancements in the US, a strong promise made by Donald Trump.

A clearer and more favorable regulatory framework could unlock new opportunities for RWA applications. With institutional giants like BlackRock and Morgan Stanley showing interest, the sector is already drawing mainstream attention, further strengthening its long-term growth prospects.

Meme Coins

The meme coin sector, one of the biggest crypto narratives in the market, has taken a major hit in today’s liquidation chaos. The top 10 largest meme coins are all down at least 22% in the past week. PENGU has led the losses, dropping 46%, while only five meme coins now maintain a market cap above $1 billion.

Over the last 30 days, the entire meme coins market has shrunk by 37%, bringing its total valuation down to $68 billion. This sharp correction highlights a shift in sentiment, with meme coins losing the momentum they had in previous months.

Recent data from Kaito suggests that meme coin mindshare has now fallen below that of DeFi, a trend that hasn’t occurred in months.

This shift implies that investors may be rotating funds away from meme coins and into more traditional DeFi assets or stablecoins.

With lower engagement and declining prices, meme coins are facing increased selling pressure. Unless a new catalyst emerges, their market dominance could continue to fade.