Cardano (ADA) Drops Below Key Support as Whale Activity and Development Surge

Cardano (ADA), the 10th-largest cryptocurrency by market cap, is facing significant selling pressure as the weekend begins. At the time of writing, ADA is down 4.08% in 24 hours to $0.677, hitting an intraday low of $0.6567. The token has been on a downward trajectory since May 26, poised to mark its fifth consecutive day of losses if bearish momentum continues.

ADA has fallen below the 50-day simple moving average (SMA) at $0.714, a key technical support level. If ADA fails to reclaim this level, further declines toward the $0.60 zone are likely. This area may attract buying interest, leading to potential range-bound movement. However, to regain bullish momentum, ADA must break above $0.74 and sustain gains toward the 200-day SMA at $0.826. A close above $0.826 and then $0.86 could pave the way for a rally to $1.01.

Despite price weakness, Cardano’s ecosystem continues to expand. The network now supports 2,002 projects, with Bitcoin Ordinals recently bridged to Cardano via BitVMX, marking a new milestone in cross-chain interoperability. Development activity is rising, with 134,286 Plutus scripts and 6,817 Aiken scripts deployed. Native asset growth remains strong, with 10.81 million tokens issued across 215,713 policies.

The number of delegated wallets rose slightly to 1.33 million, while delegated representatives (DReps) increased by 1.14% to 1,331, including 963 active participants. Weekly GitHub commits surged 23.73% to 305, reflecting continued developer commitment.

While ADA’s technical outlook suggests caution, its growing ecosystem and active developer community may provide long-term support. Traders are watching closely as ADA hovers near crucial levels.