Cardano’s price action this week has left traders on edge as the much-anticipated $0.61 support has finally broken. The move comes amid a new wave of risk aversion across cryptocurrencies, highlighted by the fear and greed index plummeting to just 31.
In the span of 72 hours, Cardano whales holding between 100 million and 1 billion ADA unloaded over $100 million worth of tokens. This triggered a wave of liquidations, including a short position of $15.9 million that was compressed around $0.666. As the issue subsides, ADA’s price has found itself in a volatile situation, with traders now keeping an eye on the technicals for early signs of opportunity.
ADA price analysis
After days of relentless selling, ADA price is currently trading at $0.6117, down 3.42% on the day and down nearly 6% for the week. 24-hour trading volume increased by 0.5% to $1.18 billion. The breakdown below the $0.61 Fibonacci 50% retracement not only invalidated Cardano’s months-long sideways trend, but also put the altcoin at a crossroads among traders.
The 200-day SMA is well above $0.7426, and the bulls will need to regain this resistance to regain upward momentum. More directly, the $0.6808 area is consolidating the upper Bollinger Band, and the relief rally needs to break above this band.
Looking at the indicators, the RSI is trending at 35.1. This indicates the market is oversold, but there are no concrete signs of a bottom or reversal as the bear market continues to drive sentiment. The MACD histogram just turned positive at +0.0029, suggesting that although there are signs of short-term easing, a change in trend has not yet been confirmed.
If the current price is not sustainable, all eyes will be on the next key support at $0.546, which is aligned with the 2025 swing low. A sustained move below this level could expose ADA to a deeper decline, but a pullback from here could trigger a round of short covering and, if volume supports the move, a relief rally.
FAQ
Large holders rapidly sold more than $100 million of ADA in just three days, leading to a technical failure and a series of liquidations.
It is true that the RSI is hovering around 35, indicating signs of oversold status, but there are no clear signs of a trend reversal at this stage.
Immediate support is at $0.546, with a deeper backstop at $0.515. The 200-day SMA near $0.74 remains a distant upside target.
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