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Cardano (ADA), the 10th-ranked cryptocurrency by market capitalization, has suffered a 43% collapse in trading volume. This massive crash has negatively impacted the price outlook as the coin reversed mild gains to settle at a multiweek low.
Cardano hits multiweek low as RSI flags weak demand
CoinMarketCap data shows that Cardano dropped by 43.07% in volume within the last 24 hours as bearish sentiment prevailed on the market. Amid marketwide fluctuations, there was no positive Cardano-specific news to stimulate investors and market participants to hang on.
Cardano was also a victim of risk avoidance, which spread across the broader cryptocurrency market. Even the leading digital asset, Bitcoin, lost its grip on the $90,000 level. The slip has affected the top 10 assets, pushing them into the red zone except Circle (USDC) and Tron (TRX).
However, while the total market cap slipped by 0.98%, Cardano fell by 1.22%. Cardano’s Relative Strength Index (RSI) at 41.64 suggests that ADA is approaching oversold conditions. However, the current low demand for ADA might prevent a rebound for the coin.
Earlier in January, Cardano was able to soar to $0.42 as its volume spiked by 72% when German banking giant DZ Bank added the asset to its platform. DZ Bank, a traditional financial platform, included ADA as part of the product it offers its users, a move celebrated as a win for crypto in the region.
Currently, ADA is fluctuating between a daily range of $0.3558 and $0.3651. As of press time, Cardano exchanges at $0.3596, which is a 0.99% decline in the last 24 hours. If low volume persists, this could cause further slips, resulting in a decline toward the next support at $0.30.
The altcoin appears to lack any bullish catalyst to neutralize the strong sell pressure, which is pushing the price down at the moment.
Bullish Cardano developments fail to ignite price recovery
Interestingly, the Cardano community had highlighted five developments that were considered bullish for the asset in 2026. These include finalization of CIP for Leios, a new Cardano ETF application, Google Cloud launching a stake pool on testnet and the listing of the "new Cardano" on Coinbase.
Proponents had been optimistic that these could trigger a rally for the coin on the crypto market. So far, these have failed to provide the spark to fire up ADA.
Despite the poor price performance and volume decline, Cardano has managed to retain its top 10 status. It was able to avert exiting the elite club because of a marketwide decline that affected its closest rival, Bitcoin Cash.
Godfrey Benjamin
Tomiwabold Olajide
Arman Shirinyan
Yuri Molchan