Cardano has entered a difficult phase as selling pressure intensifies across the crypto market. The price of ADA has fallen below the $0.60 level, a critical threshold that previously acted as both support and a psychological anchor for traders. With this breakdown, bullish momentum has faded, and the asset now faces mounting resistance amid a broader market downturn dominated by caution and fear.

Market sentiment toward Cardano has turned notably bearish, reflecting growing uncertainty about short-term price stability. However, several analysts view the current decline as part of a natural market reset, potentially setting the stage for a healthier recovery once selling pressure subsides.

According to recent on-chain data, whales — large holders responsible for significant portions of ADA’s supply — have been offloading millions of tokens in recent days. This selling activity has contributed to the latest drop, underscoring how institutional and large investor behavior continues to shape price direction.

Whales Offload 4 ADA, Raising Fears of Panic Selling

According to Santiment data, Cardano whales have offloaded more than 4 million ADA over the past week, signaling rising uncertainty among large holders. This wave of selling has added to the broader weakness seen across the market, as investors react to increasing volatility and fading confidence following Bitcoin’s recent dip below $100K.

Analysts warn that such whale activity often triggers short-term panic selling, as retail traders interpret these moves as a sign of deeper distribution or loss of conviction from major holders. While the scale of the selloff remains moderate relative to Cardano’s overall supply, it has nevertheless amplified bearish sentiment around ADA’s short-term outlook.

For the market to stabilize, much now depends on Bitcoin maintaining its current demand zone and Ethereum reclaiming higher levels above $3,400. Both assets continue to serve as the key drivers of broader crypto market sentiment and liquidity flow. If BTC can hold above $100K and ETH resumes its uptrend, confidence could quickly return to altcoins like Cardano.

ADA Struggles Below $0.60 as Selling Pressure Persists

Cardano’s (ADA) price remains under significant selling pressure, currently trading around $0.54 after losing the critical $0.60 support level earlier this week. The daily chart shows ADA struggling to gain traction above its 50-day, 100-day, and 200-day moving averages, which now act as layered resistance between $0.70 and $0.75 — levels that must be reclaimed to shift momentum back in favor of the bulls.

Recent price action reflects clear bearish control, with lower highs and lower lows forming since late September. The sharp rejection from $0.70 and subsequent decline below the 200-day moving average confirm that short-term traders remain hesitant to buy dips. However, the presence of a local demand zone around $0.50–$0.52 could provide temporary relief, as historical data shows this region acting as a strong accumulation area in prior market cycles.

Volume spikes suggest active selling, likely driven by whale offloading identified by on-chain analytics. For a reversal, ADA would need to sustain a daily close above $0.60, supported by an increase in volume and a broader recovery across BTC and ETH. Until then, the outlook remains cautious, with risks of further downside if macro sentiment fails to stabilize.

Featured image from ChatGPT, chart from TradingView.com

An analyst has pointed out how Cardano is retesting a level that has helped the asset’s price rebound multiple times during the past year.

Cardano Is Retesting The Support Level Of A Parallel Channel

In a new post on X, analyst Ali Martinez has shared a pattern forming in the daily price of Cardano. The pattern in question is a Parallel Channel, a type of consolidation channel from technical analysis (TA).

A Parallel Channel forms whenever an asset’s price trades between two parallel trendlines. If the channel has a positive slope relative to the graph axes, the pattern is called an Ascending Channel. Similarly, the trendlines pointing down create a Descending Channel.

In the context of the current discussion, the simplest case of the Parallel Channel is of interest: a channel with a slope exactly equal to zero. This type of pattern corresponds to a phase of true sideways movement in the asset’s price.

Just like other consolidation patterns in TA, the upper line of this pattern is also likely to be a source of resistance, while lower one that of support. If the price manages to break past one of these bounds, it may experience a continuation of trend in that direction. This means that a breakout above the channel can be a bullish signal, while a fall under it a bearish one.

Now, here is the chart shared by Martinez that shows the Parallel Channel that the 1-day price of Cardano has been trading inside for the past year:

As displayed in the above graph, Cardano has witnessed a plummet toward the Parallel Channel’s lower level situated at $0.52 with the recent downturn in the cryptocurrency sector.

Since ADA started trading inside the channel back in November 2024, its price has rebounded at this line several times. Given this pattern, it’s possible that the asset may find support at the mark once more. It only remains to be seen, however, whether the Parallel Channel will continue to hold or if a breakdown is coming next.

Speaking of Parallel Channels, Ethereum, the cryptocurrency ranked second by market cap, is also trading inside this type of pattern, as the analyst has pointed out in another X post.

Unlike ADA’s channel, this pattern in the 3-day Ethereum price is a long-term one, beginning way back in 2021. ETH found rejection at the resistance of this Parallel Channel earlier in the year and has since been on the way down. “The worst-case scenario: Ethereum $ETH fails to reclaim $4,000, breaks through $3,800 support, and drops to $2,400 or $1,700,” said the analyst.

ADA Price

At the time of writing, Cardano is floating around $0.547, down over 16% in the last seven days.