The price of Cardano (ADA) is facing severe bearish sentiments as market liquidation skyrocketed to $240 million in just 24 hours.
The price trend shows ADA has crashed below record highs, raising concerns among traders and investors.
Now, the market is watching key levels to see the future trajectory of the altcoin.
Cardano Price Drops Below the $0.71 Mark. Why?
ADA reached as high as $1.32 in the current bull market. However, per market data, the price has plummeted to below $0.71 as of this writing.
This decline pushed the market cap to $25 billion, and the trading volume decreased to $816 million.
The drop in ADA price coincides with a declining investors’ interest and liquidity in the Cardano chain, per data from Artemis.
ADA’s daily DEX trading volume decreased from $31.3 million on December 12, 2024, to $7 million on February 6, 2025.
Additionally, the Cardano network’s total value locked (TVL) plummeted to $355.7 million. It is important to note that the TVL stood at $701.4 million on December 3, 2024.
Furthermore, Cardano whales recently increased activity in the market by dumping 300 million ADA.
This action has dampened the enthusiasm among market participants, likely contributing to the recent drop in trading volume.
General Market Selloff and Liquidation Data
The decline in Cardano’s price coincides with the ongoing broader crypto market decline.
The market began a correction earlier this week as Bitcoin dropped below a key support level.
Bitcoin and Ethereum prices are traded in the red, declining over 0.5% and 1.0% in the last 24 hours.
This market downturn comes amid a series of stronger-than-expected US macroeconomic data, which dented anticipation of capital inflows into the crypto space.
Top-cap cryptocurrencies such as BNB Chain (BNB), XRP, and Dogecoin (DOGE) have experienced significant losses in the past 24 hours.
The ongoing market correction has triggered a wave of liquidations. In the last 24 hours, the total market liquidations reached over $240 million from more than 117,850 traders, according to CoinGlass.
Bitcoin (BTC) saw the most liquidation amounts, amounting to $43.19 million. Long positions came in at $28.36 million, while shorts stood at $28.36 million.
Ethereum trails closely behind, with $39.98 million liquidated within the same time frame. Also, Cardano experienced total liquidations amounting to $12.44 million.
Massive liquidations like this could spark Fear, Uncertainty, and Doubt (FUD) among these altcoin investors.
This could cause a rise in selling pressure, leading to a further price decline.
Cardano Price Levels to Watch
Market participants are looking at key Cardano price indicators that could determine the coin’s next movement.
One of these indicators is the Relative Strength Index (RSI). This metric has dropped to its lowest level since October.
This RSI position and support at the 200-day moving average could signal a convergence of technical indicators, indicating a potential bullish reversal for Cardano.
Furthermore, the $0.75 level acts as a key resistance for ADA. A successful breakout above this price will see ADA returning to a bullish trajectory.
On the other hand, Cardano’s failure to break above this level could lead to further price decline. However, it is essential to note that nothing is set in stone in the crypto market.
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