- Cardano closed a weekly candle below $0.5417 for the first time since November 2024.
- Crypto analyst flags room for a big move just as ADA trades under its four year support zone.
- A $6.9 million USDA swap loss and a year long drawdown have shaken Cardano holder confidence.
Cardano (ADA) has breached a crucial four-year support level, sparking concern among holders over a potential drop to new lows. According to TradingView’s weekly ADA/USD chart, ADA closed below $0.5417, a technical floor it has not violated since November 2024.
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Analyst Warns of Major Drop as 4-Year Support Fails
In the post, crypto analyst Ali Martinez highlighted the technical breakdown, noting it could create room for a “big move.” While Martinez did not specify a direction, the community largely interpreted the ambiguous warning as a bearish signal for an upcoming crash.
Compounding the technical concerns, a recent on-chain event highlighted severe ecosystem liquidity issues. A Cardano whale recently suffered a catastrophic $6.05 million loss while attempting to swap $6.9 million of ADA for 847,000 USDA, a Cardano-native stablecoin. Reports indicate the massive slippage was caused by low liquidity, which triggered a sharp, temporary price spike.
Cardano’s 2024 Hype vs. 2025 Reality
Cardano has experienced downward pressure since December 2024, following a surge to $1.326 after a sustained rally that lasted approximately five weeks. The move, which flipped users’ sentiment for the cryptocurrency into a bullish narrative, preceded Donald Trump’s listing of ADA among the coins proposed for a Strategic Crypto Reserve in the US.
That 2024 rally was also supported by significant network upgrades and founder Charles Hoskinson’s high-profile discussions on the future of U.S. crypto policy. These developments collectively boosted investor confidence and set high expectations for ADA’s 2025 performance.
Contrary to those expectations, ADA has spent the year in a steady decline, punctuated by isolated, failed rallies. The cryptocurrency has now erased over 60% of its late-2024 gains and was trading at $0.4966 at the time of writing, according to TradingView data.
Related Article: Cardano (ADA) Price Prediction: ADA Stabilizes at Mid-Range Support as Open Interest Surges
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