 ▲ Cardano (ADA) / AI-generated image |
Cardano (ADA) continues to struggle amid a broader downturn across the cryptocurrency market led by Bitcoin. Analysts say the price is falling not due to any specific internal issues, but because macro-level risk aversion and capital outflows from the altcoin market are weighing on prices in tandem.
As of February 8 (local time), data from CoinMarketCap shows Cardano trading at $0.272, down 1.40% over the past 24 hours. This closely mirrors Bitcoin (BTC), which fell 1.73% over the same period, underscoring ADA’s sensitivity to overall market direction. Weak investor sentiment is evident, with total cryptocurrency market capitalization down 1.13% and the Fear & Greed Index plunging to 8, a level categorized as “Extreme Fear.”
The primary driver of the decline is capital rotation and heightened risk aversion across the altcoin sector. The Altcoin Season Index has dropped 18.75% week-over-week to 26, suggesting that investors are pulling funds out of higher-risk altcoins and shifting toward safer assets. Like other major layer-1 tokens, ADA is facing sector-wide selling pressure rather than project-specific headwinds.
Technical indicators also point to short-term weakness. ADA is currently trading below its 7-day simple moving average (SMA) of $0.282, maintaining a downward trend. The 7-day relative strength index (RSI) stands at 36.67, indicating it has not yet entered oversold territory, but showing that bullish momentum has weakened significantly. Analysts agree that a meaningful rebound would require a recovery above the $0.282 level.
Looking ahead, consensus holds that ADA’s trajectory largely depends on Bitcoin’s movement. If ADA fails to hold the $0.265 support level, it could slide toward the next Fibonacci support around $0.269. For ADA and other altcoins to stabilize and attempt a rebound, Bitcoin, the market’s bellwether, would need to regain and hold the $70,000 level.
Ultimately, the current decline in ADA appears to stem from structural weakness across the broader market rather than issues specific to the project itself. Investors are advised to proceed cautiously, keeping a close eye on Bitcoin’s price action and whether capital begins flowing back into the altcoin market.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*