Cardano Falls Below Key Support, Here’s How Low ADA Could Go

The predominant bearishness in recent Cardano price action has caused it to lose a key support, sparking speculations of further downside.

Like most other cryptocurrencies, Cardano is correcting massively. The blue-chip asset is down over 6% in the past 24 hours, as Bitcoin drops further to $107,000 and XRP slumps below $2.30.

Cardano Loses Support

Amid the ongoing bearishness, Cardano has lost a crucial support level at $0.66. A recent TradingView analysis highlighted this, as negative momentum dominates proceedings for Cardano.

– Advertisement –

The accompanying chart shows that Cardano has lost multiple support levels in recent days. After it failed to break above the resistance at $0.74 on Monday, it dropped below the $0.70 support on Wednesday. The bearish trend continued, currently pushing ADA below another support level at $0.66.

At the time of writing, ADA trades at $0.62 and is on course for its fourth consecutive daily red candle. This price point aligns with an earlier prediction from top analyst Dan Gambardello, who foresaw this bearish move following a lower trendline rejection last week.

Remarkably, the TradingView analysis highlighted that a drop below the $0.66 support would encourage further downsides to $0.60 and $0.57 in the coming days. At the current market price, this would represent another 3.8% to 8.6% correction.

Nonetheless, if ADA reclaims the $0.66 support, the cryptocurrency could see higher prices. The analysis suggests a rise to $0.69 and $0.75 backed by renewed buying interest. The rebound would mark an end to the current bearish trend and set the token up for a short-term rally.

Whale Distribution Adds to ADA Price Pressure

Meanwhile, whales are also selling Cardano, data from Santiment shows. Top market trader Ali Martinez shared this, noting that large holders have sold 40 million ADA in the past week.

Specifically, addresses holding between 1 million ADA and 10 million ADA carried out these sales, reducing their stash to 5.49 billion. The dump reflects the predominant caution in the market, as investors play it safe by limiting exposure.

Nonetheless, the Chaikin Money Flow suggests renewed interest in ADA among retail traders. The indicator reached a three-month high of 0.15 on Wednesday, a level last seen on July 17, but currently trends at 0.12

While this is positive for Cardano, whale sales have overshadowed this move. If Cardano has a chance at recovering, whales would have to switch from selling to buying.