Cardano (ADA) Hit With 45% Volume Drop: Is This End of Recovery?

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Cardano remains in downtrend Longs exposure Advertisement Both market and on-chain metrics indicate a weakening recovery structure, and Cardano's recent market behavior reveals a dramatic loss of momentum. The most obvious indicator is found in trading activity: the data provided indicates that spot volume on major exchanges has decreased by approximately 45% to 55%, indicating a sharp drop in participation during what had appeared to be an early stabilization phase . Cardano remains in downtrend From the standpoint of price structure, ADA is still stuck in a protracted downward trend. The assets trading below the 26 EMA, 50 EMA and 200 EMA on the daily chart confirm the bearish alignment of short-, medium- and long-term trend indicators. The recent price action around $0.29 lacks strong expansion candles and follow-through volume, indicating that buyers are not committing in sufficient size. ADA/USDT Chart by TradingView Attempts to regain higher moving averages have also failed time and time again. Considering that earlier recovery efforts depended on short bursts of participation, the volume decline is especially significant. Price rebounds often fade quickly in the absence of sustained liquidity. This dynamic is confirmed by the chart's volume bars, which show isolated spikes followed by decreased activity, indicating fatigue rather than accumulation. HOT Stories Critical XRP Ledger Bug in Batch Amendment Could Have Drained User Wallets Crypto Market Review: XRP Volatility Squeeze is a $2 Recipe, Will Dogecoin (DOGE) Zero Removal Happen in February? Shiba Inu (SHIB) Bullruns Aren't Possible Yet Longs exposure Data on derivatives add an additional layer. Exchange-wide long/short ratios continue to favor long exposure, but liquidations are still comparatively low. This shows that there is leverage, but it is not causing a breakout. While the four-hour and larger windows show negative net flows, futures flows highlight fragmented sentiment rather than coordinated positioning. Advertisement You Might Also Like Fri, 02/27/2026 - 06:02 Critical XRP Ledger Bug in Batch Amendment Could Have Drained User Wallets By Alex Dovbnya The lack of cohesiveness is reinforced by spot flow metrics. Larger time frame readings shift negatively, suggesting that transient buying interest is not sustained even though short-interval inflows occasionally turn positive. Additionally, exchange volume heatmaps show that overall participation is decreasing rather than increasing, with concentrated activity on a small number of venues. Market capitalization and on-chain metrics are still comparatively stable, but this stability does not equate to strength. Advertisement Rather, it represents stagnation: capital is neither expanding nor leaving the market aggressively. The steep decline in trading volume indicates that instead of actively influencing price direction, participants are simply waiting. #Cardano #Cardano Price Prediction