Cardano News Update: ADA's $0.60 Support at Risk as Large Holders Intensify Bearish Momentum

Cardano (ADA) has dipped below $0.58 as intensified selling from major holders and weakening trader confidence have driven a 5% decrease from its previous range, as reported by

. The token’s recent price trend mirrors a wider market downturn, with both on-chain metrics and technical signals pointing to additional downside potential. Meanwhile, Cardano founder Charles Hoskinson has pointed to a lack of community engagement as a key reason for the project’s DeFi challenges, further fueling short-term uncertainty.

Large-scale investor activity has been a significant factor in ADA’s latest decline, according to

. In the last three days, wallets holding between 100 million and 1 billion tokens have sold off over 100 million coins, accelerating the downward trend. This substantial selloff, along with a 25% reduction in trading volume to $1.17 billion, has caused ADA to fall below its 200-day exponential moving average—a notable bearish indicator. Experts observe that such whale-led sell pressure often leads to 10-15% corrections, a scenario that could unfold if the $0.60 support does not hold.

Technical analysis continues to support a bearish perspective. Cardano’s Relative Strength Index (RSI) has dropped to 32, well under the neutral mark of 50, while the Average Directional Index (ADX) at 43.21 signals strong negative momentum. Should ADA fall beneath $0.60, a wave of stop-loss triggers could push the price down to $0.515, a level highlighted by Fibonacci retracement and volume profile studies, according to

. On-chain data also reveals a decrease in daily active addresses, falling from 32,115 in late October to 24,280, indicating reduced network activity (per FXStreet).

Market sentiment among traders has turned sharply negative for ADA. CoinGlass derivatives data shows a long-to-short ratio of 0.75, the lowest in the past month, suggesting a majority are betting on further declines. Short positions now outnumber longs by 2.8 to 1, with most liquidations occurring near $0.616 and $0.666. This skew implies that any short-term price increases may quickly face resistance from profit-taking or leveraged shorts.

Hoskinson’s latest remarks have reinforced the bearish outlook. In a recent statement, he criticized the Cardano community for insufficient involvement in DeFi projects, labeling it a “major obstacle” to progress. “The future of the ecosystem depends on both developer and user participation,” he stated, stressing that “waiting passively will not create the infrastructure we require.” This comes as Cardano’s total value locked (TVL) remains much lower than that of rivals like

and , despite its research-focused development approach, as discussed in .

Although the short-term forecast is bearish, Cardano’s long-term prospects are still considered strong. With a market cap of $24.5 billion and ongoing improvements like the Hydra scaling upgrade, the project has a solid base for future expansion. Nevertheless, analysts warn that ADA must first overcome its current technical hurdles. A sustained move above $0.66 could challenge the $0.70 resistance, but this would require renewed buying interest and positive developments, such as institutional investment or major ecosystem advancements.

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