Cardano’s native token, ADA, has decreased by over 6% in the last 24 hours, falling from $0.642 to $0.605, as large holders reportedly disposed of $100 million worth of tokens.
The selloff broke through the $0.61 support level — considered by traders as a critical technical floor — on volume that surged 42% above the weekly average.
According to the update on X, on-chain data indicates that wallets holding between 100 million and 1 billion ADA tokens initiated the selling over a three-day period. The timing of these sales, coinciding with ADA nearing the apex of a months-long triangle formation around $0.70, implies strategic profit-taking rather than a state of panic. Nonetheless, this downturn triggered a technical breach that could see the token drop to $0.55 if the support around $0.60 fails, as per CoinDesk Research’s technical analysis model.
As of the current moment, the token is trending below $0.60.
Cardano has also lagged behind the broader crypto market indicator CoinDesk 20, which is down roughly 5%. ADA’s market capitalization is now about $22.5 billion, making it the 10th largest cryptocurrency by valuation.
While large sales contributed to ADA’s decline, momentum indicators suggest the selloff may be losing momentum. This uncertainty has traders observing the situation closely.
The Relative Strength Index (RSI) is currently near 40, a level that doesn’t yet indicate full capitulation but is typically linked to short-term bounce potential. RSI gauges the speed and extent of price movements, with lower values indicating the asset may be oversold. A figure near 40 suggests weakness but also increases the possibility of a rebound if selling activity slows, according to the model.
Meanwhile, the MACD — a metric that monitors momentum shifts — is indicating a potential bullish crossover, where the short-term trendline crosses above the longer-term one. This signal can indicate a possible reversal, but thus far, it lacks confirmation from price action. In simple terms, the chart suggests a turnaround may be coming, but ADA’s price has yet to respond accordingly. Without buying interest, this signal remains hypothetical.
Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, please refer to CoinDesk’s full AI Policy.
