- Cardano could face up to an 86% decline as Ethereum’s Pectra upgrade resembles past bearish cycles.
- Whale transactions on Cardano have dropped 83%, suggesting weakening support from large holders.
- Over $7M in ADA long positions may be liquidated if price falls to $0.66, leading to strong selling pressure.
Cardano (ADA) may be at risk of a big price drop following the recent Ethereum Pectra upgrade. ADA has historically declined after major Ethereum network upgrades. This pattern raises concern as the altcoin trades close to a critical support level.
If the trend continues, ADA could face a loss of up to 86% in the coming weeks. Ethereum’s network changes have repeatedly placed Cardano under pressure in previous cycles. Current market outlook and technical signals suggest similar downside risks are forming again.
Ethereum Upgrades and ADA Declines
In the past, Ethereum’s major improvements have preceded Cardano price corrections. The 2021 London upgrade saw ADA drop after Ethereum introduced a deflationary fee mechanism. The 2022 Merge also pressured ADA, as Ethereum transitioned to proof-of-stake.
This pattern continued in March 2024, following Ethereum’s Dencun upgrade. During that period, Cardano fell by 65%. With the Pectra upgrade now live, ADA shows signs of repeating the cycle.
Analysts are tracking potential liquidations that could increase volatility. If Cardano drops to $0.66, a major liquidation cluster could lead to a deeper slide. Over $7 million in long positions may be affected. This could set off a selling wave that adds more bearish pressure on ADA.
Liquidation Risk Adds Pressure to Critical Support Levels
There is a growing risk of long liquidations at key support. A sharp move down to $0.66 may force over $5.4 million in long positions to close. Analysts warn that such forced closures can accelerate selling and deepen losses.
There has been a major decline in whale transactions on the Cardano network as per IntoTheBlock. Large-volume ADA transfers have dropped 83%, according to analysts. This pullback from big players could dampen investor sentiment and add to bearish momentum.
Stablecoin Market Cap Growth Contrasts Bearish Indicators
Despite the pressure, some on-chain indicators show rising activity. According to DeFiLlama, Cardano’s stablecoin market cap has reached a record high. This uptick may show increased utility or user engagement on the blockchain.
Still, whale inactivity and high leverage remain dominant risks. Analyst Kamil noted that ADA traders “are playing with fire” due to high long exposure. He added that the 83% drop in whale activity threatens broader confidence.
However despite the market uncertainty, ADA is trading above support at $0.7178 at the time of writing, up 4.55% in the past 24 hours. Cardano’s market cap now is at $25.36 billion, with 24 hour volume at $813.05 million.
