Cardano (ADA) price displays weakness on March 11, down 2.5% over the last 24 hours to trade at $0.7250. A weakening technical setup and several onchain signals suggest that ADA could see a deeper correction in the coming days.ADA/USD daily chart. Source: Cointelegraph/TradingViewLet’s take a closer look at why ADA price is underperforming today.ADA falls alongside Bitcoin and EtherThe bearish sentiment was not only exclusive to Cardano as crypto prices also plummeted across the board, with Bitcoin dropping toward $76,000 on March 10.Key takeaways:Market leader Bitcoin (BTC) has shed over 3.6% and 17% over the last week and month, respectively, setting a new four-month low of around $76,600 on March 10. BTC price has since recovered above $81,000 but is still down 1.3% over the last 24 hours.Ether (ETH) has also dropped by 8.6% over the last 24 hours to trade below $2,000 for the first time since November 2023. Performance of top-10 cryptocurrencies. Source: CoinMarketCappThis dragged altcoins like ADA down even more, with a 41% decline over the last 90 days compared to BTC’s 19% decline over the same period. The ADA/BTC pair is down approximately 20% over the same time frame.The crypto market’s volatility has been exacerbated by macroeconomic uncertainty, which has also seen a sharp drop in US equities, with crypto-related stocks such as Strategy (MSTR) and Coinbase (COIN) tanking 10%.Lack of near-term positive catalysts, a potential tariff war and fears of a US recession are adding headwinds to an already battered market.Weakening onchain Cardano activityThe bearishness in ADA prices today is preceded by reduced network activity and the total value locked (TVL), which has dropped sharply over the last week.ADA’s daily DEX trading volume fell by 67% from $21 million on March 2 to $7.3 million on March 10.Similarly, daily active addresses decreased by 59% from approximately 70,700 to 28,900 over the same period.DEX trading volume and DAA on Cardano. Source: ArtemisCardano’s TVL has plummeted from $701.4 million on Dec. 3, 2024, to reach a four-month low of $268 million on Feb. 28.This metric has again dropped by 25% over the last seven days.Cardano total value locked, USD. Source: DefiLlamaThe weekly decline in daily active addresses, DEX volume and TVL coincides with ADA’s 10% price drop over the same period.Buyer exhaustion hampers ADA priceData from Cointelegraph Markets Pro and TradingView shows ADA’s rally on March 2 pushed the relative strength index (RSI) above 70 in multiple timeframes, indicating “overbought” conditions. On March 2, ADA’s RSI reached as high as 90, 84 and 73 on the four-hour, 12-hour and daily timeframes, respectively.An overbought RSI implies that the rally is likely overheating, and the buyers have become exhausted. Consequently, traders may take this as a signal to sell and lock in profits, leading the price to either consolidate sideways or fall further.ADA/USD daily chart. Source: Cointelegraph/TradingViewIn ADA’s case, the price has been dropping since then, recording lower highs and lower lows, as shown in the chart above.Thus, the downward target for the short term is between the March 11 intra-day low of around $0.6472 and the range low at $0.5794 reached on Feb. 28.Related: Price analysis 3/10: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PIThe second area of interest lies between the Feb. 3 low at $0.5569 and the range low at $0.5197 reached on Nov. 13. This demand zone could potentially provide a good entry position for late investors. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
