Cardano’s price has dropped 5.36% in the last 24 hours to $0.611 amid a broader market sell-off, completing a death cross on its hourly chart signaling short-term selling pressure. Whales sold 100 million ADA in 72 hours, contributing to the decline from Monday’s high of $0.693.
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Cardano enters fourth day of decline: The 10th-largest cryptocurrency by market cap has fallen steadily since Monday, now trading below key moving averages.
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Death cross confirmed on hourly chart: The 50-hour moving average has crossed below the 200-hour moving average, indicating bearish momentum in the short term.
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Market-wide liquidations exceed $1.13 billion: Triggered by Federal Reserve’s rate cut and cautious Fed Chair comments, long positions suffered $975.66 million in losses.
Discover why Cardano’s price is dropping in 2025 amid market volatility and a death cross signal. Explore support levels, whale activity, and Fed impacts for informed crypto insights—stay ahead with our analysis.
What is Causing the Cardano Price Drop?
Cardano price drop stems from intensified selling pressure, with the asset completing a death cross on its hourly chart and whales offloading significant holdings. Trading at $0.611 after a 5.36% decline over the past day, Cardano mirrors a broader cryptocurrency market downturn influenced by macroeconomic factors like the Federal Reserve’s recent policy moves.
The slide, now in its fourth consecutive day, follows a weekly loss of 4.6%, erasing gains from Monday’s peak above $0.69. This bearish technical formation, where the short-term moving average dips below the longer-term one, often precedes further downside in volatile assets like Cardano.
What Does the Death Cross Mean for Cardano?
The death cross on Cardano’s hourly chart occurs when the 50-hour moving average falls below the 200-hour moving average, a classic bearish indicator reflecting sustained selling. Crypto analyst Ali from TradingView noted that large holders, or whales, have sold approximately 100 million ADA in the last 72 hours as prices tumbled, amplifying the downward momentum.
This pattern suggests short-term weakness, with potential support at $0.59 if declines persist. Historical data from similar crossovers in Cardano’s charts shows an average follow-through drop of 10-15% within a week, though reversals can occur with positive catalysts.
ADA/USD Hourly Chart, Courtesy: TradingView
In the broader context, Cardano’s movement aligns with market sentiment. At the time of reporting, the asset hovered around $0.611, with resistance levels eyed at $0.742 and $0.769 should any relief rally emerge. Experts from sources like CoinMarketCap emphasize monitoring on-chain metrics, where wallet activity indicates profit-taking by major addresses amid the volatility.
Frequently Asked Questions
What triggered the $1.13 billion crypto market sell-off affecting Cardano?
The sell-off was sparked by heightened volatility following the Federal Reserve’s 25-basis-point interest rate cut on Wednesday. Chair Jerome Powell’s subsequent remarks tempered market enthusiasm by hinting that a December cut is uncertain, leading to $1.13 billion in leveraged liquidations, predominantly from long positions totaling $975.66 million.
How might Federal Reserve policies impact Cardano’s price in the short term?
Federal Reserve decisions, like the recent rate cut and Powell’s cautious outlook, can sway investor confidence in risk assets such as Cardano. Higher uncertainty often prompts sell-offs in cryptocurrencies, potentially pushing prices toward support levels around $0.59, while clearer signals could spark rebounds above $0.70 for better liquidity and adoption prospects.
Key Takeaways
- Death cross signals caution: Cardano’s hourly chart formation points to continued short-term pressure, with whales contributing through 100 million ADA sales over three days.
- Market liquidations intensify: Over $1 billion wiped out in a session, driven by Fed policy reactions, underscoring interconnected risks across the crypto ecosystem.
- Monitor key levels: Support at $0.59 could hold or break, while resistance at $0.74 offers entry points—track on-chain data for whale movements to gauge recovery potential.
Conclusion
The ongoing Cardano price drop and death cross highlight vulnerabilities in the cryptocurrency market amid macroeconomic shifts, including the Federal Reserve’s rate adjustments and Powell’s tempered comments. As liquidations exceed $1.13 billion, investors should watch support zones and whale activity for signs of stabilization. With Cardano’s strong fundamentals in smart contracts and scalability, this dip may present opportunities for long-term holders—consider diversifying portfolios to navigate volatility effectively.
