Cardano’s ADA token experienced a significant decline on Wednesday, dropping over 3% to 64 cents, as it breached a crucial support level, signaling a shift in market sentiment, according to data from CoinDesk Analytics.
This downward movement initiated on Tuesday when trading volume surged 67% above its 24-hour average. Approximately 183 million tokens were traded as ADA fell below 64.5 cents, triggering sell-offs and pushing toward lower support areas.
This shift reflects increasing uncertainty in altcoin markets as institutional investments turn negative. CoinShares reported $300,000 in outflows for ADA this week, following $3.7 million in inflows the week prior. Analysts cite delays in crypto ETF approvals and a general risk-off behavior as primary factors behind the movement away from altcoins toward more stable assets.
Technical indicators currently illustrate robust resistance at 65.50 cents, with ADA’s recent lower highs from the 67.19 cent peak underscoring a bearish trend. Analysts suggest that unless buyers reclaim that resistance level, the token may revisit the 64 cent mark, with potential for further declines.
The wider crypto market also faced challenges. CoinDesk’s CD5 index dropped by 2% over the past 24 hours, highlighting ongoing pressure across digital assets as the year draws to a close.
Disclaimer: Portions of this article were generated with AI tools and vetted by our editorial team to ensure accuracy and compliance with our standards. For more details, refer to CoinDesk’s complete AI Policy.
