Cardano’s native token ADA fell sharply on Wednesday, falling more than 3% to 64 cents as it broke through a critical support level and confirmed a shift in market sentiment, according to data from CoinDesk Analytics.
The crash began on Tuesday, when trading volume surged 67% above its 24-hour average. Nearly 183 million tokens changed hands as ADA fell below 64.5 cents, sparking 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 recorded outflows of $300,000 this week, following $3.7 million in inflows the previous week. Analysts point to delays in crypto ETF approvals and broader risk-averse behavior as key reasons for the rotation out of altcoins toward more stable assets.
Technical indicators now show strong resistance at 65.50 cents, and ADA’s recent lower highs from the 67.19 cent peak reinforce a bearish trend. Unless buyers pick up that resistance, analysts say the token could retest the 64 cent level, with further declines possible.
The broader crypto market also stumbled. CoinDesk’s CD5 index fell 2% in the last 24 hours, underscoring the continued pressure on digital assets heading into the final months of the year.
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