Cardano’s native token, ADA, experienced a sharp decline on Wednesday, dropping over 3% to 64 cents after breaking through a critical support level. This move confirmed a shift in market sentiment, according to data from CoinDesk Analytics.
The breakdown began on Tuesday, when trading volume surged by 67% above its 24-hour average. Nearly 183 million ADA tokens changed hands as the price slipped below 64.5 cents, triggering a wave of sales and setting off a move toward lower support zones.
This decline reflects growing uncertainty in the altcoin markets, fueled by negative institutional flows. CoinShares reported that ADA saw $300,000 in outflows this week, following $3.7 million in inflows the previous week.
Analysts attribute this rotation out of altcoins and into more stable assets to delays in crypto ETF approvals and broader risk-off behavior among investors. Technical indicators now highlight strong resistance at 65.5 cents. ADA’s recent lower highs from the 67.19-cent peak further reinforce a bearish trend.
Unless buyers can reclaim this resistance level, experts warn that ADA could retest the 64-cent support, with further downside risk possible.
The broader cryptocurrency market also faced challenges. CoinDesk’s CD5 index dropped 2% over the past 24 hours, emphasizing sustained pressure across digital assets heading into the final months of the year.
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