Cardano’s ADA Token Drops 5.35% Amid Broader Market Sell-Off

Cardano’s ADA token experienced a significant decline, falling 5.35% over the past 24 hours to trade at $0.6154. The sell-off began late Monday, breaking through multiple support levels, including $0.650, with $0.620 emerging as a potential floor. The token dropped steadily from a high of $0.657, testing support after a sharp decline. Despite a brief recovery attempt earlier in the session, the bearish structure remained intact heading into midday Tuesday.

The correction in ADA’s price mirrors broader risk-off behavior across digital assets as global macroeconomic conditions remain tense. 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 around 22:00 UTC on June 16, with multiple failed attempts to reclaim $0.630 creating a new resistance band around $0.640. Lower highs formed with each bounce, confirming downward pressure throughout the period.

Technical analysts have identified a possible bullish wedge pattern, though the price remains under pressure in a descending channel. A support zone developed between $0.620 and $0.622 as volume picked up at those levels. Price entered a descending channel with consistent lower highs and lower lows. A brief recovery from $0.622 to $0.626 created an upward-sloping micro channel amid increasing volume. Resistance formed at $0.626, with the $0.624–$0.625 area acting as a pivot range during repeated tests. Recent candles showed decreasing volatility and volume, signaling consolidation near local lows.

With ADA trading just above its daily low, bulls are watching for stabilization around $0.615–$0.620. A clear directional move from here may depend on whether that support zone holds and if broader market conditions begin to recover. Some technical analysts have pointed to potential signs of a reversal in ADA’s structure. A brief bounce from $0.622 to $0.626 earlier in the session formed a small upward-sloping channel, with price testing the $0.624–$0.625 band multiple times. That area has now emerged as a potential pivot zone, though volume has since tapered and volatility has narrowed.