Since the October 10 crash, which saw Cardano’s price fall from around $0.80, ADA has been stuck in a consolidation phase. At the time of writing, ADA is trading near $0.66, according to crypto.news data. The stagnation is largely driven by bearish market sentiment coupled with heavy whale activity, adding downward pressure on the altcoin.
On-chain data shows that whales have offloaded roughly 350 million ADA over the past week. This significant sell-off has contributed to the recent price drop, as major holders lock in profits amid concerns over potential further declines.
Additionally, optimism over a potential Cardano ETF approval is fading. Polymarket data indicates that the odds of an exchange-traded fund tracking ADA being approved have fallen to 75%, down from a recent high above 87%, adding more pressure on the price. Despite this, the crypto community remains focused on the October 23 deadline for Grayscale’s ADA ETF, hoping for a favorable outcome.
Critical Resistance Levels Key to Recovery
ADA is currently testing a key support level around $0.65. On the upside, it struggles to break the $0.70 resistance, which has emerged as a crucial barrier for any upward momentum.
Technical indicators point to continued bearish sentiment. The Relative Strength Index (RSI) sits at 37.14, approaching oversold territory and suggesting weak buying pressure. Meanwhile, the Chaikin Money Flow (CMF) is at +0.13, indicating some minor capital inflows, but not enough to confirm sustained bullish momentum.
For a recovery, Cardano must break through the $0.70 resistance on increasing volume. A successful breach could see ADA test the $0.75–$0.80 range. Conversely, a drop below $0.66 could signal ongoing downside risk for the token.
