Cardano (ADA) Falls Below Key Support as Institutional Investors Pull Back

Cardano's native token, ADA, has dropped over 3% to 64 cents, breaking a critical support level and signaling a shift in market sentiment. This decline was accompanied by a significant 67% spike in trading volume, indicating increased selling pressure. Institutional investors withdrew $300,000 from ADA this week, reversing prior inflows as delays in ETF approvals prompted a rotation out of altcoins into more stable assets. Currently, ADA is trading within a narrow range between 64 cents and 65 cents, with 64 cents being a crucial level to monitor. Technical indicators suggest resistance at 65.50 cents, and recent lower highs reinforce a prevailing bearish trend. If buyers fail to reclaim this resistance level, further downside could be expected. This downturn is reflective of broader market pressures, with CoinDesk’s CD5 index also experiencing a 2% drop in the last 24 hours, underscoring continued struggles across digital assets.

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