Skip to content
Technology — Investing — Cryptocurrency — Finance — Nse

Cardano's (ADA) Value Falls Below $0.70: Whale Holdings Dip to Two-Year Minimum

High bearish pressure hits Cardano as large investors depart and technical markers signal downward trend, yet heightened capital influx could serve as opposing sign.

,   and  Administrator
3 min read
Large-scale Cardano sell-off by whales underway, technical signals bearish, yet investment inflows...
Large-scale Cardano sell-off by whales underway, technical signals bearish, yet investment inflows may present a bullish counter-argument.

Cardano's (ADA) Value Falls Below $0.70: Whale Holdings Dip to Two-Year Minimum

Cardano (ADA) is currently cruising at around $0.67, recovering by a modest 2.2% in the last 24 hours, but the broader market has kept it below the $1 mark for nearly a month. Despite this Minor victory, the price correction over the last week has reinforced the bearish trend that Cardano has endured for quite some time.

Technical indicators are hinting at increased downward pressure on Cardano. The Average Directional Index (ADX) has soared to 40.19, up from a mere 15.83 just four days ago, signaling that the bearish trend isn't just present, it's gathering strength. FYI, when ADX breaches the 40 mark, it means the trend is strong and may speed up.

The declining ranks of the whales – large holders of between 1 million and 10 million ADA – doesn't bode well for Cardano. These crucial holders have slashed their numbers to 2,406, the lowest since February 2023, which could indicate reduced confidence in ADA's short-term future.

Cardano is between a rock and a hard place, with immediate resistance at $0.69 and critical support at $0.64. The coin is currently trading at $0.67 while the 20-day EMA hovers around $0.71. The Relative Strength Index (RSI) remains in the negative zone, giving an edge to the bearish forces at least in the short term.

If the critical support level at $0.64 breaks during another test, it could push Cardano towards the next support at $0.58, extending the ongoing downward trend. However, there seems to be light at the end of the tunnel as Cardano has seen a massive 500% week-over-week increase in inflows into digital asset investment products. These influxes amount to $0.6 million, part of the broader trend of investors returning to altcoins.

Now, here's where the beef begins. Some critics argue that Cardano's fundamental value leaves much to be desired. Its TVL (Total Value Locked) ranks 18th with nearly $333 million, but its market capitalization stands at a whopping $23.1 billion - approximately 69 times its TVL. This ratio has led some to label Cardano as overvalued or even a "zombie blockchain." Critics point to the sluggish ecosystem growth in comparison to its competitors like Solana.

Cardano Foundation executives have defended the project, arguing that it concentrates on marketing the blockchain for real-world applications like identity verification and record-keeping, rather than the trendy DeFi craze.

Looking at the daily chart, Cardano has been on a downward spiral since last Wednesday. It has made three consecutive lower highs, briefly breaching the $0.660 support before retracing. However, there are those who remain hopeful about Cardano's future with predictions of potential growth leading up to 2025. The prospect of listing Ripple's $RLUSD stablecoin on the Cardano network is one such factor fueling optimistic forecasts. This could bring added liquidity to the Cardano ecosystem and attract more investors to ADA.

Wanna Advertise?

Data obtained as of June 7, 2025

Insights:

  1. Cardano's current trading patterns suggest a consolidation phase, with ADA bouncing between $0.654 and $0.678 in the past 24 hours.
  2. After a correction from early-year highs near $1.10, Cardano has stabilized in the $0.65–$0.75 range, hinting at a potential short-term bottom.
  3. The outlook for June 2025 is cautiously bullish, with Cardano potentially breaking $0.80 if market sentiment and its ecosystem growth remain positive.
  4. Cardano's strong fundamentals, such as the Chang Hard Fork, Hydra Layer-2 scaling, and EVM compatibility via Intersek bridge, support a positive outlook for the near future.
  5. Despite the recent bearish trend, the increase in inflows into digital asset investment products indicates that investors are returning to cryptocurrencies like Cardano, signaling potential growth in the finance sector.
  6. The technology-driven Cardano blockchain, with its focus on real-world applications and the potential listing of Ripple's stablecoin, could bring added liquidity and attract more investors, supporting its growth trends in the near future.

Read also:

    Related

    Latest