Cardano’s native token ADA fell more than 6% in the past 24 hours, from $0.642 to $0.605, as large holders reportedly sold $100 million worth of tokens.
Selling broke through the $0.61 support level – long seen by traders as a key technical bottom – with volume surging 42% above the weekly average.
According to the article on The timing of this selling, as ADA neared the top of a one-month triangle near $0.70, suggests calculated profit-taking rather than panic. Nonetheless, the move triggered a technical breakdown that could push the token towards $0.55 if support near $0.60 fails, according to CoinDesk Research’s technical analysis model.
At the time of writing, the token was below $0.60.
Cardano has also underperformed the broader crypto market indicator CoinDesk 20, which is down around 5%. ADA’s market capitalization now stands at around $22.5 billion, although it remains the 10th largest cryptocurrency by valuation.
While heavy selling caused ADA to collapse, momentum signals suggest the move may be running out of steam. Traders are closely monitoring this tension.
The Relative Strength Index (RSI) now sits near 40, a level that does not yet signal complete capitulation but is often associated with near-term rebound potential. The RSI measures the speed and magnitude of price action, with lower values indicating that the asset may be oversold. According to the model, a number near 40 suggests weakness, but also increases the chances of a rebound if sales slow.
Meanwhile, the MACD – a tool that tracks changes in momentum – is showing signs of a bullish crossover, where the short-term trendline moves above the long-term one. This type of movement may indicate a potential reversal, but so far, price confirmation is missing. Simply put, the chart suggests a turnaround, but ADA price has yet to follow suit. Without the intervention of buyers, the signal remains theoretical.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team for accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
