Cardano has declined 1.55% over the past 24 hours to trade at $0.281, closely tracking a broader cryptocurrency market retreat driven by macro risk-off sentiment and sustained institutional outflows. The move mirrors Bitcoin’s 2.05% drop over the same period, underscoring ADA’s high beta correlation to the flagship asset. This synchronized pullback reflects a market increasingly sensitive to external pressures rather than protocol-specific developments.
The primary driver behind Cardano’s weakness is its beta exposure to Bitcoin’s sell-off, which itself has been pressured by escalating geopolitical tensions between the U.S. and Iran alongside a fourth consecutive week of net outflows from U.S. spot Bitcoin ETFs. These institutional flows signal a notable reduction in risk appetite among larger players, a sentiment further corroborated by the Crypto Fear & Greed Index sinking to 12—deep in “extreme fear” territory. In this environment, ADA’s price action is less a function of its own ecosystem progress and more a reflection of macro headlines and Bitcoin’s directional bias. Traders should monitor shifts in Bitcoin ETF flow data and any de-escalation in geopolitical developments as potential catalysts for sentiment reversal.
Compounding the macro pressure is Cardano’s technical posture. ADA currently trades below its 30-day simple moving average at $0.284, indicating short-term bearish momentum. While the Relative Strength Index sits at 46—neutral rather than oversold—trading volume has dipped 3.6% to $371 million, suggesting limited conviction among buyers to step in and absorb the selling pressure. This combination of technical weakness and subdued participation points to a market characterized by passive distribution rather than aggressive accumulation. A meaningful rebound would likely require a noticeable surge in volume to confirm renewed buyer interest and shift the near-term narrative.
Looking ahead, the immediate catalyst for risk assets is the release of the FOMC minutes on February 18, which could recalibrate market expectations around interest rates and liquidity. For Cardano, holding the $0.275 support level is critical for short-term stability. Should Bitcoin find footing above $67,000 following the minutes, ADA could attempt a recovery toward $0.285. Conversely, a decisive break below $0.275 would open the door to a test of the next significant support zone near $0.265. In the current climate, Cardano’s trajectory remains contingent on Bitcoin’s performance and the broader market’s interpretation of macro signals.
In summary, Cardano’s recent decline is symptomatic of a wider risk-off move across digital assets, amplified by its own technical vulnerabilities and thinning liquidity. The path forward hinges on two key questions: Can Bitcoin stabilize above $67,000 in the wake of the FOMC minutes, and will Cardano attract volume-backed buying interest at the $0.275 support level? Until those dynamics clarify, the near-term bias remains cautiously bearish, with macro headlines continuing to dictate price action more than network-specific fundamentals.
Source:: Cardano Mirrors Bitcoin’s Slide as Macro Headwinds Pressurize Crypto Markets