Cardano’s ADA Plummets 13% Despite 400,000 New Wallets—What’s Brewing?

Cardano's native token takes a nosedive while its ecosystem defies gravity with explosive wallet growth. Contradiction or calculated move?

Price vs. Adoption: The Cardano Conundrum

ADA's double-digit drop paints a grim picture—until you spot the 400,000-strong army of new wallets marching in. Since when do fundamentals matter in crypto anyway?

Market whales might be dumping, but retail's digging trenches. Either this is the smartest accumulation play since Bitcoin's early days... or another 'number go up' illusion for bagholders.

Closing Thought: Wall Street analysts would call this 'healthy consolidation.' Crypto natives know it's just Tuesday.

Cardano (ADA) is currently trading at $0.6015, down 2% in the past 24 hours. Despite the price drop lately, Cardano continues to show impressive on-chain growth. It now has over 5.4 million wallets, with 100,000+ new wallets added in just the last 60 days. 

Market Activity Remains Strong

Data from TapTools shows that in just over 6 months, cardano has added 400,000+ new wallets. Additionally, ADA’s 24-hour trading volume has surpassed $700 million. CoinMarketCap ranks Cardano’s community sentiment as the 7th most bullish, with over 81% positivity.

In just over 6 months, Cardano has added 400,000+ new wallets.pic.twitter.com/uX8lgDNRdz

ADA remains under pressure

However, its recent price action remains in a bearish trend. Cardano has dropped 13.4% in the past week, falling from over $0.70 on June 12 to around $0.60 today. 

Most technical signals are neutral to bearish: RSI is at 33.39, close to oversold, MACD and Momentum are negative. CCI is the only indicator flashing a clear buy. Major moving averages, like the 10-day EMA ($0.6324) and 200-day EMA ($0.7097), are above the current price, showing a strong downtrend.

Support at $0.60 Is Critical

Cardano’s long-term holders are also cashing out. If ADA falls below $0.60, the next major support lies at $0.57. A short-term bounce to $0.66 is possible if the support holds, but a sentiment shift is needed for sustained recovery.

ADA also faces strong resistance between $0.75–$0.78, a zone it has failed to break in past rallies. Unless it reclaims $0.62 and pushes toward $0.70, there is a risk of more downside.

Signs of a Bullish Reversal?

On the brighter side, recent analysis points to a possible triple bottom forming at current levels, which is a classic bullish reversal pattern. ADA is also trading within a falling wedge, which often leads to breakouts. If ADA holds this level and forms a strong bullish weekly candle, it could gain upside momentum. Key upside targets to watch are $1.00, $1.21, and $1.43.