Cardano (ADA) has experienced a significant downturn of nearly 34% over the past month and more than 15% in the last week, leading to a current market cap of $22 billion. Trading below $1 for an extended period, ADA continues to reflect a prevailing bearish sentiment.

Recent technical indicators point to a robust downtrend, with the ADX surging to 46.8, indicating heightened selling pressure. Despite this, there remains optimism that key support levels might help ADA reverse its downward trajectory and potentially surpass the $1 mark in March.

ADA's ADX Signals a Formidable Downtrend

The current ADX for ADA sits at 46.8, a significant rise from 10.3 on February 23. The Average Directional Index (ADX) serves to measure the strength of a trend, devoid of any directional bias.

Within the scale of 0 to 100, an ADX above 25 signifies a robust trend, with values exceeding 40 indicating an even more compelling trend. With ADA's current ADX at 46.8 amid a downtrend, it points towards a strengthening bearish momentum, reinforcing the likelihood of further decline.

Notably, the diminishing number of Cardano whales – addresses holding between 1 million and 10 million ADA – from 2,477 to 2,454 suggests a potential surge in selling pressure, hinting at possible downside for ADA's price.

Looking ahead, ADA remains susceptible to testing crucial support levels, potentially leading to further price movements as market dynamics evolve. Keep an eye on the unfolding trends and key levels, as they could shape Cardano's trajectory in the weeks to come.