Cardano Breaks Support as Institutional Outflows Weigh on Altcoin Sentiment
Cardano’s ADA token slipped 3% to $0.64 on Wednesday, breaching key support as traders reacted to growing institutional outflows and shifting sentiment across the altcoin market.
The decline accelerated Tuesday evening when trading volume surged 67% above its daily average. Nearly 183 million ADA were exchanged during the session, pushing prices below $0.645 and confirming a short-term bearish setup, according to CoinDesk Analytics data.
The weakness comes amid a reversal in institutional participation. CoinShares data showed $300,000 in weekly outflows from ADA products, a sharp contrast to the $3.7 million in inflows recorded the previous week. Analysts attribute the rotation to delays in crypto ETF approvals and a broader risk-off tone that has dampened demand for altcoins.
Technically, ADA faces immediate resistance near $0.655, with its recent pattern of lower highs from the $0.6719 peak reinforcing the downward bias. A sustained break below $0.64 could open the door to deeper retracements unless buying interest re-emerges.
Across the wider crypto complex, sentiment remained fragile. The CoinDesk CD5 Index fell 2% in 24 hours, signaling continued caution as investors scale back exposure heading into year-end.
