- Cardano price dropped over 15% in 24 hours to $0.77, breaking key support levels and signaling bearish pressure.
- Regulatory concerns, declining user activity, and weak technical indicators suggest further downside risk despite ongoing ecosystem development.
Cardano’s price has taken a sharp hit, plunging over 15% within a single day to hover around $0.77. This sudden drop comes after the coin broke through critical support levels, signaling a market controlled by bears. Despite ongoing development within the Cardano ecosystem, short-term sentiment has turned distinctly negative.
Cardano Faces Pressure as SEC ETF Pause Weighs on Market Sentiment
The U.S. SEC’s decision to pause Bitwise’s multi-asset ETF—which included a 4.97% allocation to ADA—has rattled investors. Though ADA’s share was minor, the regulatory move reignited broader concerns about the future of altcoin investments in institutional portfolios.
Simultaneously, Bitcoin dominance surged to 61.29% as capital fled altcoins. The Altcoin Season Index slipped from 43 to 36, suggesting a major market shift toward Bitcoin and away from riskier assets like ADA.
On-Chain Weakness Adds to Bearish Outlook
Cardano’s network fundamentals have also shown signs of stress. Daily active users declined to 39.6K, a steep drop from earlier highs above 60K. In the DeFi space, total value locked (TVL) fell to $382 million, down nearly 3% in just 24 hours. These metrics confirm reduced user engagement and capital deployment within the ADA ecosystem.
Cardano Technical Indicators Suggest More Downside Ahead
The technical picture offers little immediate hope for a reversal. Cardano broke below its 7-day simple moving average at $0.848 and dipped past its 24-hour pivot of $0.837. The MACD histogram turned negative at -0.0145, while the RSI at 55.76 indicates ADA isn’t yet in oversold territory—leaving room for further declines.
Traders are watching the 38.2% Fibonacci level at $0.780. If this fails, ADA could head toward $0.73 or even $0.68.
Development Continues, but Price Struggles Persist
Despite bearish signals, Cardano’s development roadmap remains active. The platform is preparing for the Chang upgrade and advancing the PlutusV4 smart contract environment. Layer-2 solution Hydra and inter-blockchain communication tools are also progressing steadily.
Cardano retains a presence in institutional portfolios like Grayscale’s Smart Contract Fund, and the Cardano Foundation recently secured $19.22 million to boost operational resilience.
While Cardano’s fundamentals remain strong long-term, the current price action suggests caution. For now, traders are closely watching support levels as ADA battles ongoing bearish pressure.
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