TLDR
- Cardano has broken below the critical $0.50 support level, signaling growing bearish pressure in the market
- Whales have sold over 440 million ADA in the past month, contributing to the downward price movement
- Technical analysis points to the next major support zone at $0.25 if selling pressure continues
- Despite the breakdown, ADA remains within a falling wedge pattern that could trigger a short-term bounce
- Short positions heavily outweigh longs at $93.15 million versus $24.46 million, creating potential for a squeeze
Cardano’s price action has taken a decisive turn lower after breaking below the crucial $0.50 support level. The breakdown comes as large holders continue to reduce their positions.
ADA currently trades around $0.50, down 1.64% in the past 24 hours. The move below this key psychological and technical level has shifted market sentiment toward the bearish side.
On-chain data reveals that whales have offloaded approximately 440 million ADA tokens within a single month. This distribution from large wallets aligns with the broader price decline seen across the charts.
The selling pressure intensified when a single wallet sold 14.5 million ADA for just $850,000 USDA. Such large-scale exits often signal capitulation phases where holders expect further downside.
Technical Structure Points Lower
From a technical perspective, the breakdown below $0.50 leaves a gap in the market structure. The next visible liquidity pocket sits between $0.42 and $0.38, where volume previously accumulated during older trading cycles.
If this zone fails to attract buyers, charts indicate the high-timeframe target around $0.25 becomes the next major level. This area previously served as a multi-month base during past market cycles.
The lower-timeframe candles continue printing consistent lower highs. Momentum remains soft with sell-side pressure visible on the breakdown.
Without a quick reclaim of the $0.50 level, acceleration toward lower support blocks appears likely. The same $0.50 level has now flipped from support to resistance, which will cap any rally attempts.
Falling Wedge Pattern Offers Hope
Despite the bearish breakdown, ADA continues to trade within a falling wedge pattern on the charts. This technical formation often leads to short-lived upward moves when properly defended.
The Chaikin Money Flow indicator shows signs of turning higher after avoiding a breakdown below its descending trend line. This metric tracks whether large wallets are adding or removing capital from the market.
The CMF had been drifting lower over recent sessions but stayed above its key support. It has now curled upward again, signaling renewed inflows from larger holders.
This combination of wedge support and improving money flows gives ADA its first real sign of strength in weeks. Buyers appear to be defending the structure rather than letting the downtrend accelerate unchecked.
Derivatives data adds another layer to the potential bounce scenario. Short positions currently total $93.15 million versus just $24.46 million in long positions on Gate’s ADA-USDT market.
With shorts holding nearly four times the leverage of longs, a squeeze becomes possible. ADA needs roughly a 2% move to start hitting the first batch of short liquidations at $0.51.
If price rises above current levels, the unwind can begin. This often accelerates into a much larger move as traders rush to close positions.
For any sustainable recovery to take hold, Cardano must first reclaim the $0.60 level. Only above this reclaimed base can ADA attempt moves toward $0.68 to $0.72 again.
The invalidation level for the wedge pattern sits below $0.49. Losing that support would break the structure and likely accelerate the decline toward the $0.25 target zone identified on higher timeframes.
The post Cardano (ADA) Price: Whale Selling Pushes Token Below $0.50 Support Level appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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