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.

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.

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Whales Sell 40 million $ADA

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.