Cardano (ADA) has dropped to $0.6328, declining 1.73% in the past 24 hours. The fall follows whale selling, a technical breakdown, and continued market rotation into Bitcoin.
The decline comes as the Cardano community debates a treasury liquidity proposal that would convert 140 million ADA—valued at roughly $88.6 million—into stablecoins. The aim is to allocate funds for ecosystem development.
Founder Charles Hoskinson clarified that the sale would be executed through over-the-counter (OTC) or algorithmic methods to avoid affecting open market prices. However, traders appear to be pricing in short-term sell pressure, with ADA already down 9.22% over the past week.
Key Support Levels Break Amid Downward Momentum
Cardano has broken below a key Fibonacci support level at $0.662. The next support lies near $0.615, which was briefly tested on June 16.
The MACD histogram is at -0.0046, indicating a strengthening bearish trend. RSI currently sits at 37.98, approaching oversold conditions but not yet low enough to suggest a reversal. ADA remains below its major moving averages—the 50-day SMA is at $0.718, and the 200-day SMA at $0.813—reinforcing its bearish outlook.
ADA has also broken below the midline of a descending channel that has defined price action since late 2024. This breakdown points to increased downside risk, with the lower channel boundary nearing $0.60.
On-chain derivatives data also shows rising bearish sentiment. Funding rates across major exchanges remain negative, suggesting traders are paying a premium to stay short. Open interest has declined to $317 million, indicating reduced confidence and falling speculative activity around ADA.
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Whales Offload Hundreds of Millions in ADA
Over the past week, whale addresses have sold approximately 270 million ADA. Despite a 70% jump in 24-hour trading volume to $739 million, Santiment data shows this surge has been driven by distribution, not accumulation.
Large transactions exceeding $100,000 have fallen sharply. Whale transaction count—covering transfers above $1 million—has dropped to multi-month lows, highlighting the pullback of high-value investors.
At the macro level, Bitcoin dominance has climbed to 63.96, up 0.13% in the past day. This shows a rotation of capital away from altcoins and into Bitcoin. Moreover, ADA and similar tokens have faced reduced inflows as traders move toward relatively stable assets amid a neutral market sentiment.
Development Ecosystem Expands, But Fails to Offset Pressure
Cardano recently published Weekly development report as of June 13. As per the report, the blockchain now hosts over 2,004 decentralized applications. The number of native assets minted has reached 10.83 million, and smart contract deployments—including Plutus and Aiken scripts—are approaching 140,000.
Notably, Minswap remains Cardano’s largest decentralized exchange, with $79 million in 30-day trading volume. Additionally, lending protocol Liqwid holds $80.9 million in total value locked (TVL). However, these developments have not been sufficient to offset near-term sell pressure triggered by macro and structural factors.
