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The predominant bearishness in recent Cardano price action has caused it to lose a key support, sparking speculations of further downside.
Like most other cryptocurrencies, Cardano is correcting massively. The blue-chip asset is down over 6% in the past 24 hours, as Bitcoin drops further to $107,000 and XRP slumps below $2.30.
Cardano Loses Support
Amid the ongoing bearishness, Cardano has lost a crucial support level at $0.66. A recent TradingView analysis highlighted this, as negative momentum dominates proceedings for Cardano.
Remarkably, the TradingView analysis highlighted that a drop below the $0.66 support would encourage further downsides to $0.60 and $0.57 in the coming days. At the current market price, this would represent another 3.8% to 8.6% correction.
Nonetheless, if ADA reclaims the $0.66 support, the cryptocurrency could see higher prices. The analysis suggests a rise to $0.69 and $0.75 backed by renewed buying interest. The rebound would mark an end to the current bearish trend and set the token up for a short-term rally.
Whale Distribution Adds to ADA Price Pressure
Meanwhile, whales are also selling Cardano, data from Santiment shows. Top market trader Ali Martinez shared this, noting that large holders have sold 40 million ADA in the past week.
Specifically, addresses holding between 1 million ADA and 10 million ADA carried out these sales, reducing their stash to 5.49 billion. The dump reflects the predominant caution in the market, as investors play it safe by limiting exposure.
Nonetheless, the Chaikin Money Flow suggests renewed interest in ADA among retail traders. The indicator reached a three-month high of 0.15 on Wednesday, a level last seen on July 17, but currently trends at 0.12
While this is positive for Cardano, whale sales have overshadowed this move. If Cardano has a chance at recovering, whales would have to switch from selling to buying.