Cardano (ADA) Drops 17.3% in Two Weeks Amid Bearish Technical Momentum

Cardano (ADA) has recently experienced a significant price drop, falling nearly 12-15% and slipping below the $0.60 mark for the first time in nearly two months. The altcoin is currently hovering around the $0.59 to $0.60 range, a critical support zone. While the broader crypto market remains relatively stable, ADA's price has been losing momentum.

The primary driver behind this decline is the bearish technical momentum building on the charts. Technical indicators are signaling downward pressure, which is expected to persist unless buyers step in. ADA is forming a possible falling wedge pattern, typically a bullish reversal sign, but it is not yet confirmed. If the price breaks below the current support, the next potential stops could be around $0.57 or even $0.50.

On-chain data reveals another concerning factor: the 'Age Consumed' metric, which tracks the movement of older coins, has hit a 9-month high. This spike indicates that long-term holders are cashing out, which could increase selling pressure and weaken market sentiment. This behavior suggests diminishing confidence among investors and could make it more challenging for ADA to regain positive momentum in the short term.

If Cardano can hold above the $0.60 level, there is a possibility of a bounce back toward $0.66 or even $0.70. However, if this support breaks, the next line of defense would be at $0.57. A drop below that could quickly bring the price down to $0.50. The current price action of Cardano is a mix of technical weakness, long-term holders selling off, and bearish trader sentiment. While it is not yet time to panic, the situation warrants close monitoring.

Additionally, the extended death cross, which has persisted for 25 days, has negatively impacted the coin's price value. The death cross occurred on the daily chart on May 24, 2025, when the coin traded at around $0.7593, leading to a downward spiral and forming lower lows on the crypto market. As of the latest data, Cardano is trading at $0.6047, representing a 2.86% decline in the last 24 hours. This bearish pressure has significantly impacted investor sentiment, with most investors considering ADA for short trades as it continues to struggle below the $0.70 level.

Despite the bearish outlook, there are some positive developments for Cardano. The blockchain has registered increasing activity in staking pools and rewards, indicating a strong on-chain presence. However, this has not translated into a price gain for ADA. Additionally, there is optimism regarding the odds of an exchange-traded fund (ETF) approval on the broader market. According to a recent prediction, the Cardano ETF now stands a 75% chance with the Securities and Exchange Commission (SEC). Market participants will be watching to see if these positive sentiments can push Cardano out of its death cross and reverse the current downward trend.

The broader market conditions, including trade disputes and monetary tightening across major economies, have added pressure to risk markets, dragging ADA and other large-cap tokens lower. The sell-off began late Monday and broke through support at $0.650, with the price dropping to $0.6154. The price of Cardano has dropped 3% as it tests key support, with rising liquidations and weakening derivatives sentiment fueling fears of a drop to $0.50. To put things into perspective, ADA price dropped from a local high of $0.76 to the current $0.628, which is a decline of around 17.3% in just over two weeks.

In summary, the decline in Cardano's price is primarily due to bearish technical momentum and the extended death cross. While there are some positive developments, such as increasing on-chain activity and the potential for an ETF approval, these have not yet translated into a price gain. The broader market conditions and technical indicators suggest that Cardano may continue to face downward pressure in the near term.