Cardano (ADA) has experienced a setback, plummeting 32% following a bearish movement in the MACD indicator. Analysts are now forecasting a crucial support level around $0.23, as market sentiment and trading activity continue to weaken.

Monthly MACD Indicates Bearish Trend

The monthly MACD has shifted to a bearish position, indicating a potential long-term downward trend. In similar situations prior, such a crossover has led to significant drops in ADA’s value. According to analyst Ali Martinez, this recent trend has already caused a 32% decrease in price.

“The last time the monthly MACD crossed bearish, Cardano $ADA dropped 81%,” said Ali Martinez. “The recent crossover has already led to a 32% decline.”

The downward momentum remains evident as ADA trades below its moving averages. The 9-week EMA is currently at $0.45, and 21-week EMA sits at $0.66, indicating persistent weakness.

Cardano Price Chart Cardano (ADA) Price Chart Source: TradingView

Decreased Market Interest in Futures

According to data from CoinGlass, futures open interest for Cardano is currently around $660 million, showing a sharp decline from over $1 billion earlier this year. This drop has been most pronounced since October as both the price and participation levels have dwindled.

This reduced trading activity reflects a less enthusiastic market outlook, which is underscored by market data indicating that both retail and institutional participants are feeling bearish regarding ADA.

Despite a significant 12 million ADA sold by whale wallets in the last couple of months, the lack of support at earlier levels suggests that the selling pressure may continue to dominate the market.