Cardano’s native token, ADA, has slipped over 6% in the past 24 hours, falling from $0.642 to $0.605, as large holders reportedly sold $100 million worth of tokens.
The selloff smashed through the $0.61 support level — long viewed by traders as a key technical floor — on volume that surged 42% above the weekly average.
According to the post on X, on-chain data shows wallets holding between 100 million and 1 billion ADA tokens drove the move, unloading over a three-day stretch. The timing of those sales, just as ADA approached the top of a months-long triangle formation near $0.70, suggests calculated profit-taking rather than panic. Still, the move triggered a technical breakdown that could push the token toward $0.55 if support near $0.60 fails, according to CoinDesk Research’s technical analysis model.
As of the time of writing, the token has trended below $0.60.
Cardano also underperformed the broader crypto market gauge CoinDesk 20, which is down about 5%. ADA’s market cap now stands at around $22.5 billion, although it remains the 10th largest cryptocurrency by valuation.
While large selling drove ADA’s breakdown, momentum signals suggest the move could be losing steam. That tension has traders watching closely.
The Relative Strength Index (RSI) now sits near 40, a level that doesn’t yet signal full capitulation but is often associated with short-term bounce potential. RSI measures how fast and how far prices have moved, with lower readings indicating the asset may be oversold. A reading near 40 suggests weakness, but also raises the chance of a rebound if selling slows down, according to the model.
Meanwhile, the MACD — a tool that tracks shifts in momentum — is showing signs of a bullish crossover, where the short-term trendline moves above the longer-term one. This kind of move can point to a potential reversal, but so far, it lacks price confirmation. In plain terms, the chart is hinting at a turnaround, but ADA’s price hasn’t followed through yet. Without buyers stepping in, the signal remains theoretical.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.