- Cardano (ADA) slides to $0.59 support as whales sell and over $4 million in long positions get liquidated.
- Cardano trades below its 200-week moving average, risking a fall to $0.55 if it breaks support near $0.60.
- Proposed Cardano ETF could boost institutional demand and lift ADA above $1.10.
Cardano has dropped by over 5% in the past 24 hours, reaching around $0.60, and extending the downside. The price action of ADA has triggered a technical breakdown, which may push the token to move to $0.55 if the support near $0.60 is broken.
The decline follows a fall from a local high near $0.89 at the beginning of October. Despite some short-lived attempts at recovery, ADA has failed to gain momentum.
Whale Activity Triggers Selloff Amid Liquidations
At the time of writing, the token trades near $0.59 support level, an area closely monitored by traders following a wave of profit-taking from large holders.
According to a post on X by crypto analyst Ali Martinez, whale wallets holding between 100 million and 1 billion ADA sold about 100 million tokens within just 72 hours before prices dropped. This selling often occurs more before price corrections, especially when liquidity and market leverage are high. Martinez pointed out the activity when ADA was trading around $0.64, which pointed to weakening momentum.
Furthermore, the sentiment around Cardano turned more bearish according to liquidation data from CoinGlass. Traders lost $4.36 million in total liquidations in 24 hours, with only $209.25K in short positions and $4.15 million in long positions. The imbalance also suggests that the sharp decline in ADA affected bullish traders.
As a result of the increased whale sell-offs and leveraged liquidations, ADA plummeted in value to a support level of $0.59 to $0.60. As market risk sentiment recovers, traders could be positioning their exposure in the altcoin market.
Cardano Price Outlook: Technical Indicators and Key Market Levels
Moreover, technical analyst Jesse Olson highlighted in a post on X that “a downward sloping 200-week moving average is not bullish.” His chart shows that ADA continues to trade below this long-term gauge, which is usually a resistance level until it flattens and moves upwards.
Bullish momentum is also declining as indicated by market indicators. The Relative Strength Index (RSI) is currently near 35, indicating that the asset is approaching oversold levels and may experience a short-term rebound if selling pressure reverses.
If ADA fails to hold the $0.59 support level, the price may drop to $0.55 or $0.51, reaching the 2025 low. However, on the positive side, the resistance levels are at $0.65 and $0.70. According to technical analysts, a breakout above the range at $0.80 could signal a reversal of the overall trend and a potential rally to $1.70.
Moreover, the support zone will likely decide whether the ongoing downtrend will continue or if a short-term bounce will form in early November.
Also Read | Cardano (ADA) Price Outlook: Is a Break Above $0.80 the Gateway to $1.70?
Cardano ETF Filings Could Support Long-Term Sentiment
Despite near-term weakness, recent exchange-traded fund (ETF) proposals could improve long-term sentiment for Cardano. ETF providers REX Shares and Osprey Funds have filed with the U.S. Securities and Exchange Commission (SEC) to include ADA in their Top 10 Crypto Index ETF. In addition, the proposed product would consist of staking, where investors would receive network rewards in addition to market exposure.
These proposals have not yet received SEC approval, but they represent growing institutional interest in altcoins beyond Bitcoin and Ethereum. If approved, a Cardano ETF would join similar Altcoin products recently launched in the U.S. for Solana, Litecoin, and Hedera (HBAR). Furthermore, analysts suggest that approval will attract institutional inflows and may double the ADA price.
Also Read | Hedera HBAR Price Jumps After NYSE Lists Spot ETF Expanding Institutional Access
