Cardano is currently facing substantial selling pressure, as its price has fallen below the critical $0.50 support level. This decline has raised concerns among investors, many of whom are now assessing how much further this downward trend may extend.
Recently, the price of Cardano dipped below the essential $0.50 threshold, which had previously provided structural support. The price action indicates a lack of bullish response, suggesting a weakening demand. Lower-timeframe price movements are consistently printing lower highs, and the next visible liquidity area appears to be in the $0.42 to $0.38 range. Should this zone fail to attract sufficient buying interest, Cardano could face deeper declines into historical levels where volume had previously accumulated.
As it stands, Cardano is trading around $0.50, down 1.64% over the past 24 hours. The market momentum remains subdued, with evident sell-side pressure accompanying the recent price breakdown. To avert a further slide towards lower support levels, Cardano must swiftly reclaim the $0.50 mark.
The next significant support level for Cardano is identified at $0.25, a critical higher-timeframe zone that previously acted as a multi-month base. The breakdown below the $0.50 line has now exposed this $0.25 area as the next major target for the price.
If the price of ADA continues to fall without forming a higher low, the $0.25 support zone could become increasingly attractive to sellers. Until Cardano can reclaim its lost support, any rallies are likely to encounter resistance at the now-supply zone of $0.50.
Recent on-chain data reveals a spike in selling activity among large ADA holders. Analyst Ali Martinez points out that approximately 440 million ADA was withdrawn from whale wallets within a month, indicating a shift in sentiment among significant investors. This decline in whale holdings aligns with the broader negative price trend, suggesting that both institutional and large retail investors are reducing their exposure to Cardano rather than accumulating during this period of weakness.
The outflow of over 440 million ADA from whale wallets has intensified the existing sell pressure. This trend is further compounded by the loss of key technical support levels. Without a renewed influx of demand, any recovery attempts may be limited as whales continue to offload their holdings during price rebounds.
A particularly notable instance of this trend involved a single wallet that sold 14.5 million ADA for a mere $850,000, which further erodes market confidence. Such significant sell-offs are often characteristic of capitulation phases, indicating that some market participants are bracing for further declines.
In conclusion, Cardano is currently navigating a critical juncture where both chart patterns and on-chain behaviors suggest potential for further downside unless buyers re-enter the market promptly. With the $0.50 support level now breached, Cardano lacks major historical demand zones until reaching the $0.42 to $0.38 range, which has served as a pivotal swing point in past cycles. If this band fails to stimulate a buying reaction, the high-timeframe target around $0.25 becomes increasingly relevant.
Ongoing on-chain flows reinforce the technical shortcomings observed in price action. The downward trend in whale supply, coupled with large holders exiting positions and spikes in distribution, creates a scenario where ADA could continue to experience pressure until key capitulation zones are tested or a significant divergence appears on higher timeframes.
For Cardano to demonstrate signs of structural recovery, reclaiming the $0.60 level is crucial. Only above this threshold can ADA aim for a move towards the $0.68 to $0.72 range again. Until such a recovery is achieved, the market sentiment remains cautious, liquidity appears diminished, and prices may explore deeper support levels before any sustainable rebound can occur.
