Cardano’s native token, ADA, fell sharply on Wednesday, falling over 3% to 64 cents as it broke through a critical support level and confirmed a shift in market sentiment, CoinDesk Analytics data found.
The collapse began on Tuesday, with trading volume rising 67% above its 24-hour average. Nearly 183 million tokens changed hands as ADA fell below 64.5 cents, triggering selling and triggering a move towards lower support zones.
The move reflected growing uncertainty in altcoin markets as institutional flows turned negative. According to CoinShares, ADA saw $300,000 in outflows this week, following $3.7 million in inflows from the previous week. Analysts point to delays in crypto ETF approvals and broader risk-off behavior as key reasons for the rotation out of altcoins and into more stable assets.
Technical indicators are now showing strong resistance at 65.50 cents, with ADA’s recent lower highs from the high of 67.19 cents reinforcing a bearish trend. Unless buyers regain that resistance, analysts say the token could retest the 64-cent level, with further downside possible.
The broader crypto market also stumbled. CoinDesk’s CD5 index fell 2% in the past 24 hours, underscoring continued pressure across digital assets heading into the final months of the year.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
