After the crypto market faced a sudden and massive sell-off this week, Cardano (ADA) experienced a sharp 22% decline, breaching the critical $1 level. The substantial drop has triggered a wave of panic selling, amplifying bearish sentiment and investor uncertainty.
Cardano Holders Lock in Profits
Cardano (ADA) plunged 22% from its $1.14 weekly high on Wednesday, breaching the critical $1.00 support level and igniting a wave of investor panic.
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Many Cardano (ADA) holders exited positions during a sharp price decline, securing earlier gains.
On Thursday, realized profits surged to 307 million ADA, valued at $276 million, marking the highest level since March 2024, when ADA’s price also sharply declined. The spike highlights a wave of panic selling as ADA’s price fell to around $0.90, signaling heightened investor anxiety.
After substantial outflows of tens of millions of dollars on January 8 and 9, Cardano crypto spot exchanges recorded positive inflows on January 10.
Despite this, 24-hour trading volumes remained negative across most major platforms. According to CoinGlass data, Coinbase alone saw an 888% increase in ADA trading volume over the past 24 hours.
Technical indicators Bearish
Although ADA saw a 4.4% price increase over the past 24 hours and is trading at around $0.96 when writing, technical indicators continue to signal weakening momentum.
The widely used technical analysis tool, MACD (Moving Average Convergence Divergence), has turned into a bearish crossover on the daily chart, suggesting that ADA may experience further downward momentum in the short term.
While Cardano’s daily RSI is currently testing the 50 level, up 5 points from yesterday’s lows and showing a bullish crossover, if downward pressure persists, the coin could correct towards the key support level at $0.85.
A consolidation around this range could help mitigate additional losses and set the stage for a recovery. Reclaiming the $1.00 level would be crucial in restoring investor confidence and reversing the bearish trend.
On the Flipside
- Cardano has recently solidified its partnership with Argentina’s Ministry of Labor, focusing on developing transformative blockchain solutions.
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