Cardano (ADA) has been down almost 34% in the last 30 days and more than 15% in the past week. Its market cap is now at $22 billion. It has been trading below $1 for over a month, reflecting persistent bearish sentiment.

Technical indicators show a strong downtrend, with ADX rising to 46.8, signaling intensified selling pressure. However, if key support levels hold, ADA could reverse its trend and potentially break above $1 in March.

Cardano ADX Shows the Current Downtrend Is Strong

ADA’s ADX is currently at 46.8, rising sharply from 10.3 on February 23. The Average Directional Index (ADX) measures the strength of a trend without indicating its direction.

It ranges from 0 to 100, with values above 25 signaling a strong trend and values below 20 suggesting a weak or non-trending market. An ADX above 40 indicates a very strong trend, showing that market participants are highly confident in the current price movement.

With ADA’s ADX at 46.8 and the price in a downtrend, it indicates that the bearish momentum is gaining strength. This suggests that selling pressure is intensifying, making a continuation of the downtrend more likely.

Unless buying interest increases significantly, ADA could face further downside. The high ADX value confirms that the current bearish trend is strong and persistent, reducing the likelihood of a quick reversal.

ADA Whales Just Hit Their Lowest Level Since Early January

The number of Cardano whales – addresses holding between 1 million and 10 million ADA – has been steadily decreasing over the past week, dropping from 2,477 on February 21 to 2,454 currently. This is the lowest level since January 9.

Tracking these whales is crucial because they represent large investors whose buying or selling actions can significantly impact market liquidity and price movements.

When whale addresses decrease, it suggests that major holders are either reducing their positions or distributing their holdings, which can indicate a bearish sentiment.

This sharp decline in the number of Cardano whales could signal increasing selling pressure, potentially leading to further downside for ADA’s price.

As large holders reduce their exposure, it can create more supply in the market, driving prices lower. Additionally, a decreasing number of whales suggests weakened confidence among big investors, which could trigger further selling from smaller holders.

If this trend continues, ADA could face increased downward momentum in the coming days.

Will Cardano Return to $1 In March?

ADA’s EMA lines currently show a bearish setup, with short-term lines positioned below long-term ones, indicating ongoing downward momentum.

ADA could test the crucial support level at $0.5 if this downtrend continues strongly. If this support is lost, the price could decline further to $0.32, marking its lowest level since early November 2024.

This bearish configuration suggests continued selling pressure, increasing the likelihood of further downside unless buying interest picks up.

However, if the support at $0.5 is tested and holds, Cardano price could find the strength to reverse its trend.

In this bullish scenario, ADA could rise to test the resistance at $0.65.

If that level is broken, the price could continue climbing to $0.83 and even $0.90, potentially paving the way for a rally above $1 for the first time since late January.

After Donald Trump got into a viral televised argument with Ukrainian President Zelensky at the Oval Office, meme coins TRUMP and MAGA spiked in value. MAGA was among the initial meme coins themed after Trump, and this is its first upward movement in over a month.

It’s impossible to determine exactly what caused traders to push MAGA up by nearly 10%, but it provides an interesting window into the meme coin space.

Meme Coins Spike As Trump and Zelensky Fall Out Publicly

Donald Trump had a dramatic impact on the meme coin space when he launched his own token, but some things never change. Earlier today, Trump hosted Ukrainian President Volodymyr Zelensky at the White House to discuss resolving the ongoing war. Things did not go according to plan, however, and a televised argument ensued:

“We’re trying to solve a problem. Don’t tell us what we’re gonna feel. Because you’re in no position to dictate that, remember this. You’ve allowed yourself to be in a good position, you don’t have the cards right now. You’re gambling with the lives of millions of people. You’re gambling with World War III!” Trump said as the dispute got out of hand.

The media cycle has been abuzz with commentators discussing this argument and its potential fallout on US-Ukraine relations and the war.

Already, some Senators are calling the meeting “a complete and utter disaster,” questioning whether Trump and Zelensky can do business ever again. However, an unexpected event happened in crypto, as TRUMP jumped up 8%:

TRUMP, the President’s official meme coin, has been on a steady decline this month. It briefly rebounded in the middle of February, helped out by a new airdrop, but it otherwise remained limp.

However, its rebound is not the most important factor to consider. MAGA, an unofficial Trump-themed token, jumped nearly 10% after the Zelensky interview.

MAGA is a completely unofficial product, bearing no affiliation whatsoever with Trump or any of his associates. It spiked a few times during the election but fell off after his victory and dropped nearly 100% after the official meme coin launched.

US Political Developments Are Now Impacting the Meme Coin Market

Understandably, Trump’s fans would rally behind him after the talk with Zelensky. These price reactions show an interesting glimpse into the mind of a meme coin trader, particularly a Trump supporter.

Are these buyers expecting it to be a sensible investment? Or are they simply trying to make a public gesture of faith for their favorite politician? It could even be a cynical move, hoping to create a pump while this story dominates the headlines.

Ultimately, due to their names, it’s almost impossible to easily search for either one of these tokens on social media. Therefore, assigning a concrete motive is speculative.

However, Vitalik Buterin previously feared that political meme coins could be used for corruption, and new proposals at the Congress echo this sentiment.

Even if politicians are banned from creating or endorsing meme tokens, enterprising individuals may keep creating them all the same.

Bitcoin ETFs saw a record $2.7 billion in outflows this week, signaling an impending bear market. Corporate Bitcoin holders are feeling the pain, and liquidations are spiking all across the crypto industry.

Additionally, the Federal Reserve Bank of Atlanta predicted that the US GDP would decrease by 1.5% in Q1 2025, fueling further economic pessimism.

Is Bitcoin Heading for a Bear Market?

The US spot Bitcoin ETF market, which grew so quickly in its first year, is seeing massive outflows. Earlier this week, it hit a new record for outflows, approaching $1 billion. Now that we have most of the week’s data, it reflects the growing concerns among institutional investors.

Over the past week, Bitcoin ETFs had $2.7 billion in net outflows, a troubling sign of a bear market. For comparison, this is the largest weekly net outflow since March 2024.

Fears of a bear market are gripping the entire crypto space, even hitting corporate Bitcoin holders. Strategy (formerly MicroStrategy) recently spent nearly $2 billion on BTC, and this didn’t help its stock price.

Today, trade data shows that it has fallen 57% since last November. Metaplanet fell 54% from its peak, and Tesla has been falling too. All these firms hold huge amounts of Bitcoin.

Bitcoin may be feeling the brunt of this potential bear market, but liquidations are spiking all across the crypto sector. According to the latest data, nearly $1 billion was liquidated in the last 24 hours. Traders are currently showing Extreme Fear, the lowest level since the 2022 FTX collapse.

A few prominent figures are looking at the brighter side. Michael Saylor urged the community not to panic sell, telling his followers to “sell a kidney if you must, but keep the Bitcoin.”

Arthur Hayes, former CEO of BitMEX, amended his recent prediction that BTC will drop and bounce back. However, he maintains that Bitcoin will rebound after a bear market.

“We are making lower lows in this current wave. I was tempted to add risk this morning, but looking at this price action I think we have one more violent wave down below $80,000, most likely over the weekend, then crickets for a while. Hold on to your butts!” Hayes claimed via social media.

Dark economic portents have been present for a few days now, and a market correction seems inevitable. This afternoon, the Federal Reserve Bank of Atlanta claimed that the US GDP is on track to decline by 1.5% in Q1 2025.

Even a disproven rumor could cause a lot of problems. Overall, the current macroeconomic factors point towards a short-term bearish cycle for Bitcoin and the entire market.