Cardano Faces Critical Test at $0.85 as Panic Selling Drives 15% Drop

• Cardano realized profits hit 9-month high of 307M ADA
• Price breaks below psychological $1.00 level
• MACD signals potential bearish crossover

Cardano‘s market structure has experienced significant deterioration as panic selling pushes the cryptocurrency below crucial support levels. The 15% decline over 48 hours represents more than just a price drop – it signals a fundamental shift in how investors view Cardano’s near-term prospects.

Understanding Cardano Selling Pressure

The dramatic spike in Cardano‘s realized profits tells a compelling story about current market psychology. With 307 million ADA (approximately $276 million) being sold within 24 hours, we’re witnessing the highest profit-taking activity in nine months.

This massive liquidation suggests that even long-term Cardano holders are choosing to secure gains rather than risk further downside.

Cardano Realized Profits. Source: Santiment

The technical picture adds another layer of concern to Cardanos market position, with the MACD indicator approaching a bearish crossover. This technical development, occurring less than a week after a bullish signal, highlights the rapidly shifting sentiment around Cardano.

The potential for continued downward pressure becomes particularly significant as the cryptocurrency tests the critical $0.85 support level.

Currently trading at $0.92, Cardano faces a crucial battle to prevent further decline. The loss of the psychologically important $1.00 level has created a challenging environment where reclaiming this threshold becomes essential for any sustained recovery.

Should Cardano stabilize at $0.85, it could provide the foundation needed for a potential rebound toward $1.23, though significant buying pressure would be needed to overcome current market skepticism.

Seasoned Crypto Content Writer, Editor and Journalist who entered the cryptocurrency industry out of sheer passion and love for writing.