Cryptocurrencies Witness Significant Declines Today as Bears Tighten Their Grip

The notable selling momentum has deteriorated Cardano’s structure.

ADA has been in a free fall despite recent buying activities from large-scale players. Ali Charts highlighted that whales scooped over 130 million Cardano tokens in the past 72 hours.

Santiment’s chart shows whales with 10 million to 100 million increased their holdings from 12.39 billion to 12.51 billion Cardano tokens. Over the past 72 hours, whales bought more than 130 million #Cardano$ADA!

4:11 AM · Feb 28, 2025

While whale purchases often trigger rebounds, ADA extended its declines, losing a key support today. The altcoin trades at $0.5993 after losing over 10% over the past day. The current price places Cardano below the crucial foothold of $0.60. Buyers should step in to defend this support to avoid relentless price dips for ADA.

Cardano Price Enters Bearish Zone

The daily chart demonstrates ADA’s dire situation, with prices plummeting within a descending wedge formation. Today’s decline of over 10% has seen Cardano forming a third successive bearish candlestick. ADA is resting the trendline local support after losing 50% FIB ($0.6272). The Supertrend indicator complements this structure, signaling overwhelming seller influence. Bears are likely targeting the psychological support at $0.50. The FIB levels suggest a breach of the descending wedge setup could drive the ADA price to the 23.68 FIB at $0.4396. That would mean a 26.65% dip from Cardano’s current price.

Cardano’s Negative Sentiments

ADA boasts a bearish structure and will likely dip further before decisive bounce-backs. The Daily Active Addresses index indicates faded demand. The indicator plunged from early February levels of 49,585 to 24,407 today. Source: Santiment

That reflects dwindled network activity as users exit. Moreover, Cardano’s MVRV ratio dipped to -6.05%. That shows that most investors who bought the altcoin at recent highs are holding their assets at a loss. Reduced profitability will unlikely retain or attract new buyers, further deteriorating the price. Also, the negative MVRV highlights bearish sentiments, with fewer players looking for opportunities from ADA’s current price levels.

What’s Next for Cardano

ADA’s current performance reflects the dominant selling pressure in the crypto market. Donald Trump’s tariffs have dented risky assets over the past sessions. Amidst the uncertainty, experts believe the prevailing market dip presents an opportunity to join at discounted prices. While Bitcoin witnesses record-high long liquidations, Michael van de Poppe stated:

> We’re not at the end of the bull cycle. This is just an extreme opportunity to be buying into the markets.

This has been the highest long liquidation since October ’21 for #Bitcoin. That shows how heavy the impact is, exchanging hands between the weak and the smart people. We’re not at the end of the bull cycle; this is just an extreme opportunity to be buying into the markets.

3:20 PM · Feb 28, 2025

Thus, the prevailing whale interest in ADA possibly signals upcoming rebounds for the altcoin. Broad-based rallies will shift Cardano’s trajectory and propel prices above the psychological mark of $1. Nevertheless, ADA’s near-term trajectory depends on its performance at $0.60. Bulls should reclaim this level to prevent extended dips to $0.4396 (in the near term).

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