Cardano (CRYPTO:ADA) is at risk of falling below a critical support level, indicating a looming bearish trend.

Declining demand, reflected in reduced active addresses and unfavorable profit-to-loss ratios, contributes to ADA's downward trajectory.

The formation of a descending triangle pattern on ADA's chart suggests continued selling pressure, with a breach of support potentially pushing the price to $0.36.

Key indicators like the Relative Strength Index (RSI) indicate a preference for token distribution over accumulation, further supporting the bearish outlook for ADA's price.

Traders are advised to monitor ADA closely for potential downside movements in the near term.