Analysts Caution Cardano (ADA) May Drop Further Before $1 Rebound After 12% Dip

Cardano (ADA) fell roughly 27% this week, slipping below the $0.66 support as risk-off flows hit crypto. Bitcoin’s slide toward $104,000 and softer altcoin liquidity magnified downside, and on-chain data shows large holders leaning ￰0￱ Reading: Is BlackRock About To Go Public With Ripple And XRP? Here’s What We Know Whale Flows Split as ADA Loses Support Santiment-tracked wallets holding 1–10 million ADA offloaded about 40 million ADA over seven days, while broader whale distribution reportedly reached 350 million ADA, pressuring ￰1￱ big wallets accumulated 140–200 million ADA, creating a split tape that’s fueling choppy consolidation between $0.65–$0.70.

Derivatives add to the cautious tone. Cardano’s open interest slipped 2.12% to $669.9 million, and long liquidations ($1.13 million) dwarfed shorts ($187,000), signaling bulls bore the brunt of the latest ￰2￱ the 4-hour chart, ADA is carving a falling wedge, but confirmation requires a breakout above $0.74. Until then, momentum indicators remain mixed: RSI 37 (approaching oversold) while CMF 0.12–0.15 hints at returning spot inflows that have yet to overpower supply from large ￰3￱ Risk First, Rebound Later Technicians flag a “risk-first” path: losing $0.66 puts $0.65 in play; failure there opens $0.62–$0.60, then $0.57 (channel/structure confluence).

A deeper shakeout could probe $0.53 if broader crypto weakness ￰4￱ the upside, ADA must reclaim $0.66 and then clear $0.74–$0.80 (50-day EMA cluster) to flip trend ￰5￱ that range, bulls target $0.86, with a psychological $1.00 retest feasible into Q4 if risk appetite and flows ￰6￱ analysts still eye a path toward $1.20–$1.60 on a confirmed breakout, but most caution the market may dip before it rips given leverage resets and uneven ￰7￱ headlines (including the Oct. 23 Grayscale ADA ETF decision window), stablecoin and ETF net flows, and whether whale selling cools. A rotation back into altcoins typically follows BTC stabilization; conversely, renewed BTC downside would likely extend ADA’s consolidation near the lows.

ADA's price trends to the downside on the daily chart.), funded by fees and staking rewards and governed via Project Catalyst, a war chest that supports tooling, DeFi, and infrastructure without VC ￰8￱ Reading: Why The Dogecoin Price Could Still Hit A 600% Rally To Send It Above $1.5 New staking access (e. g., eToro U. S.) and ongoing initiatives like Midnight and Leios continue to broaden the roadmap, even as TVL ($288 million) lags larger ￰9￱ image from ChatGPT, ADAUSD on Tradingview