- ADA crashes by 18% in a day, dropping to $0.534 and breaking key $0.55 support, indicating deepening bearish momentum.
- Trading volume jumps 242%, pointing to panic selling, while RSI at 29.85 confirms ADA is in oversold levels.
- Open interest and user activity plunge as 67.61% of traders still hold long, risking deeper losses if $0.60 isn’t reclaimed.
Cardano is having a steep decline as it drops below key support levels, adding to a wider crypto market pullback. At press time on April 7, ADA was trading at $0.534, an 18.20% drop in the past 24 hours.
Weekly losses extended to 19.46%, while the monthly decline was at 36.65%. Market cap decreased by 18.30%, falling to $18.4 billion. Meanwhile, trading volume surged by 242.72% in the same 24-hour period, reaching $1.39 billion. This sharp volume increase during a price decline typically points to heavy liquidations or panic selling.
Break Below $0.55 Adds Pressure
Cardano has broken below the $0.55 zone, which previously acted as a major support level. The current price action shows a strong downtrend, with the asset falling from highs above $1.20 earlier in 2025.
The daily price movement ranged from $0.58 to $0.51, showing increased volatility. The RSI is at 29.85, placing it deep in oversold level.
A reading below 30 usually suggests that the asset is heavily sold. However, prolonged stays in this range may point to continued bearish momentum. Notably, the RSI remains far below its signal line of 42.20, indicating sustained selling pressure.
The MACD also supports the bearish trend. The MACD line is at -0.0124, well below the signal line at -0.0296. Although the red histogram bars are shrinking, the overall momentum still favors sellers.
Falling Open Interest and User Activity
Speculative interest in ADA has also declined. Open interest dropped to $417.15 million, down from a peak of over $811 million in November 2024. This decline suggests traders are reducing positions amid high volatility.
At the same time, daily active addresses fell sharply to 10,200, compared to 114,000 at last year’s peak. This drop shows weakening user participation and on-chain activity. Volume has risen sharply, hitting 142.29 million ADA during the decline. This level of activity during a sell-off often marks exit points for many participants.
Price Below Moving Averages
The current price places ADA well below both its 50-day and 200-day moving averages. The 50-day MA is at $0.648, while the 200-day MA is at $0.723. This configuration forms a typical death cross pattern, suggesting downward pressure is mounting.
According to data shared by Ali, 67.61% of traders on Binance Futures are holding long positions on ADA. The long/short ratio of 2.09 indicates a majority expect a rebound. However, unless ADA reclaims the $0.60 level, the technical setup remains bearish.
