Cardano Drops After US Crypto Reserve Inclusion, More Losses Ahead?

Cardano has been under heavy selling pressure after its inclusion in the U.S. crypto reserve, struggling to regain bullish momentum. The price has dropped significantly, with analysts watching whether support levels will hold or if further declines are ahead. Despite initial optimism surrounding its reserve status, the market reaction has been negative, and indicators suggest that selling pressure is not easing.

The BBTrend indicator shows that Cardano is facing increasing downward momentum, with sellers firmly in control. This measure, which tracks price trends using Bollinger Bands, has moved deeper into negative territory, signaling strong bearish sentiment. If the trend continues, ADA could struggle to stabilize, and buyers will need to step in to reverse the decline.

Another key signal, the Directional Movement Index (DMI), reinforces this bearish outlook. The ADX, which tracks trend strength, has climbed higher, confirming that the current downtrend is growing stronger. The negative directional index remains dominant, showing that sellers are still setting the pace. While minor pullbacks have occurred, they have not been strong enough to suggest a meaningful reversal in market sentiment.

Adding to concerns is the possibility of a death cross forming on Cardano’s charts. This pattern, which occurs when a short-term moving average crosses below a longer-term one, is typically seen as a strong bearish signal. If it materializes, the price could continue to decline, potentially testing key support levels. However, if buyers regain control and push the price above resistance levels, a rebound could be possible. A breakout above these levels could provide the momentum needed for a recovery, but until then, the outlook remains uncertain.