Cardano Price Crashes 15% in a Day—Will ADA Fall Below $0.60?

• Cardano (ADA) has plunged over 14.24% in a single day, extending its monthly losses beyond 35%.
• The drop follows crypto market volatility, with Bitcoin hitting the $87K zone after three months.
• The U.S. SEC reviews NYSE Arca’s proposal for a Grayscale Cardano ETF.

Cardano (ADA), one of the top-performing altcoins in the 2024 bull rally, is now facing a steep decline as the crypto market experiences strong volatility. The price of ADA has dropped over 14.24% in a single day, extending its monthly losses beyond 35%. This downturn comes amidst the U.S. Securities and Exchange Commission’s (SEC) acknowledgment of NYSE Arca’s proposal to list a Grayscale Cardano ETF.

With Bitcoin falling below the $87,000 zone for the first time in three months, Cardano has slipped under $0.65. In the past 24 hours, ADA has plunged by 10.05%, with an intraday drop of 14.24%, triggering liquidations worth $8.47 million. As bearish pressure intensifies, the anticipation of a breakdown below the $0.60 support zone, hints that falling below this level may lead to a further decline to $0.50.

Cardano’s Technical Outlook: Bearish Signals and Key Levels to Watch

On the ADA/USDT 4-hour chart, Cardano is forming a descending triangle, with lower highs pressing against a strong support level. A breakdown below this support could trigger further bearish momentum.

Zooming in, ADA struggling to break past the 20-day EMA line, facing strong resistance rejection. The inability to surpass the local resistance trendline at $0.73 has led to the current downturn. Meanwhile, the 0.236 Fibonacci retracement level at $0.7531 has been broken, signaling weakening bullish momentum. If Cardano bounces back from $0.7531, it could rise to $0.8286 (38.2% Fibonacci level). However, the price has already fallen below the 200-day EMA ($0.8139) and may soon test the local support trendline.

Technical indicators paint a bearish picture. With the current downtrend, the 50-day and 100-day moving average (MA) cross lines are on the verge of a negative crossover. Cardano’s Chaikin Money Flow (CMF) is at -0.10, which indicates strong selling pressure. This suggests that more traders are selling than buying, which could lead to further price drops.

Also, the BBPT indicator reveals bear power at -5.32, outweighing mild buying pressure at 2. This imbalance suggests that bears currently have more control over the market. On the other hand, Cardano’s RSI sits at 22.91, deep in the oversold zone, hinting at a possible rebound if buying interest returns. 

For now, ADA’s key support sits at $0.60, with further downside possible toward $0.58 if selling pressure continues. On the upside, resistance levels at $0.68 and $0.73 need to be broken for any bullish recovery. Looking ahead, the SEC’s decision on Cardano’s ETF in 2025 could be a major catalyst for institutional adoption and price momentum.