Cardano (ADA) Price: Why This 15% Weekly Drop Could Continue Lower
TLDR
Cardano (ADA) has dropped nearly 15% over the past week to around $0.54, reaching its lowest level since early February
The price decline was triggered by escalating Middle East tensions following the US attack on Iran, creating risk-off sentiment across crypto markets
On-chain data shows increasing profit-taking activity and dormant wallet movements, indicating growing selling pressure from ADA holders
Technical analysis reveals ADA broke below key support levels and closed below an ascending trendline, confirming bearish momentum
Long position liquidations totaled nearly $17 million last week as the geopolitical conflicts sparked investor risk aversion
Cardano price has fallen nearly 15% over the past week as geopolitical tensions in the Middle East continue to weigh on cryptocurrency markets. The token currently trades around $0.54 after reaching its lowest level since early February.
The price decline comes as tensions escalated following the US attack on Iran late Saturday. President Donald Trump announced that three nuclear facilities in Iran were targeted in the military action.
— Donald J. Trump (@realDonaldTrump) June 21, 2025
This geopolitical conflict has triggered risk-off sentiment across global markets. Bitcoin dropped to a low of $98,200 on Sunday, pulling down altcoins including Cardano in the process.
The market turmoil has led to widespread liquidations in the crypto space. CoinGlass data shows that nearly $17 million in ADA long positions were wiped out over the past week as investors fled to safety.
Source: Coinglass
Cardano had shown strength earlier this year when Bitcoin rallied from $76,000 to $111,600 in April and early May. During that period, ADA gained 46% but only managed to reclaim previous range lows.
The token’s recovery from $0.57 in April saw it reach $0.8 by mid-May. However, the subsequent downtrend has erased much of those gains.
On-Chain Metrics Signal Growing Selling Pressure
Network data reveals concerning trends for ADA holders. Santiment’s Network Realized Profit/Loss metric shows increased profit-taking activity among investors.
The NPL metric experienced a major spike on June 16, reaching its highest level since early March. Another spike occurred on Friday, though less intense than the previous one.
These spikes indicate that holders are selling their ADA holdings at a profit on average. This creates additional selling pressure that could weigh on price recovery attempts.
The Age Consumed index also shows bearish signals for Cardano. Recent spikes in this metric suggest dormant tokens are moving from wallets to exchanges.
Historical data shows that price declines typically follow these spikes in ADA’s Age Consumed index. The most recent uptick on Friday suggested ADA was preparing for further downward movement.
Development activity on the Cardano network has been declining since February. This trend could concern long-term investors who view developer engagement as a key fundamental indicator.
Technical Outlook Remains Bearish
From a technical perspective, Cardano faces multiple headwinds. The token was rejected from its 200-day Exponential Moving Average on June 11.
Source: TradingView
ADA then crashed nearly 25% over the following 11 days until reaching Sunday’s low of $0.51. The token also closed below an ascending trendline last week that had been in place since early November.
The break below this trendline confirms the shift to a bearish trend structure. If ADA continues declining and closes below weekly support at $0.49, it could target the next daily support level at $0.45.
The Relative Strength Index currently reads 26, indicating oversold conditions. While this suggests potential for a bounce, the Moving Average Convergence Divergence shows a bearish crossover with rising red histogram bars.
The MVRV ratio has remained positive for nearly two months, showing that 90-day holders are still in profit despite recent declines. However, the share of profitable holders is falling rapidly.
This creates a challenging environment for any recovery attempts. Bullish moves would likely face selling pressure as holders look to exit at break-even or small profits.
Any potential recovery would need to be accompanied by increased demand and a reversal in the mean coin age metric. Without these supportive factors, selling pressure could continue to overwhelm buying interest.
Cardano price currently hovers around $0.54 as markets assess the ongoing geopolitical situation and its impact on risk assets.
The post Cardano (ADA) Price: Why This 15% Weekly Drop Could Continue Lower appeared first on CoinCentral.
Filed under: News - @ June 23, 2025 9:23 am