Institutional Pullback Pushes Cardano Below Crucial Support Level

Cardano Slips Below Support as Institutions Scale Back Exposure

Cardano (ADA) dropped 3% over the past 24 hours to trade near $0.64, extending recent weakness as institutional investors pared back risk across the altcoin market.

The selloff gained momentum late Tuesday, when trading volumes jumped 67% above the daily average, with roughly 183 million ADA changing hands. The break below $0.645 confirmed a bearish short-term structure, according to CoinDesk Analytics, as the token failed to sustain key support.

The shift coincided with negative institutional flows, marking a reversal from the prior week’s optimism. CoinShares reported $300,000 in outflows from ADA-based products this week, following $3.7 million in inflows earlier, citing renewed caution tied to ETF approval delays and broader risk-off sentiment in crypto markets.

From a technical perspective, resistance remains firm near $0.655, while a series of lower highs from the $0.6719 peak point to continued downside risk. Unless buyers reclaim that level, analysts warn ADA could retest the $0.64 area or lower.

The broader market mirrored ADA’s weakness, with CoinDesk’s CD5 index sliding 2% in 24 hours, underscoring a cautious tone across digital assets as traders head into the final stretch of 2025.