Cardano (ADA) Falls Below Key Support as Institutional Investors Pull Back
Cardano’s native token, ADA, fell sharply Wednesday, dropping over 3% to 64 cents as it broke through a critical support level and confirmed a shift in market sentiment, CoinDesk Analytics data found.
The breakdown began Tuesday, when trading volume spiked 67% above its 24-hour average. Nearly 183 million tokens changed hands as ADA slipped below 64.5 cents, triggering sales and setting off a move toward lower support zones.
The move reflected growing uncertainty in altcoin markets as institutional flows turned negative. According to CoinShares, ADA saw $300,000 in outflows this week, following $3.7 million in inflows from the prior week. Analysts point to delays in crypto ETF approvals and broader risk-off behavior as key reasons for the rotation out of altcoins and into more stable assets.
Technical indicators now show strong resistance at 65.50 cents, with ADA’s recent lower highs from the 67.19 cent peak reinforcing a bearish trend. Unless buyers reclaim that resistance, analysts say the token could retest the 64 cent level, with further downside possible.
The broader crypto market also stumbled. CoinDesk’s CD5 index dropped 2% in the past 24 hours, underlining continued pressure across digital assets heading into the final months of the year.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
