Cardano (ADA) Sinks 8% to $0.669: Why Bears May Tighten Grip Amid ETF Delays

Cardano (ADA) falls 8% in a week, now $0.669, down 3% in 24 hours, $23.6B market cap, $618M trading volume (17% down)

Written by: Arslan Butt • Monday, June 2, 2025 • 1 min read

• Last updated: Monday, June 2, 2025

Quick overview

Cardano (ADA) has fallen 8% in a week to $0.669, with a market cap of $23.6B and a trading volume down 17% to $618M.
Investor optimism waned after the SEC delayed Grayscale's Cardano ETF application, leading to a significant drop in on-chain activity.
Cardano is currently facing resistance at $0.6940 and support at $0.6445, with bearish technical indicators confirming a downtrend.
Traders are advised to consider a short position below $0.6640, with a stop at $0.6940 and a take profit target at $0.6445.

Cardano (ADA) falls 8% in a week, now $0.669, down 3% in 24 hours, $23.6B market cap, $618M trading volume (17% down)

Investor optimism was crushed after the SEC delayed Grayscale’s Cardano ETF application. Hopes were high with 71% approval odds before the announcement. Cardano’s daily transactions briefly jumped from under 30,000 to 50,000 as traders rushed in. But with the delay, on-chain activity shrunk 28% to 36,000 and sell pressure and caution took over.

Peers like Solana (SOL), Dogecoin (DOGE), and TRON (TRX) also fell, contributing to a 0.9% drop in overall crypto market cap.

Key Points:

Cardano falls to 10th as TRON takes over with $25B market cap
ETF hopes fade as SEC delay kills momentum
Trading volume down 17% to $618M in 24 hours

Bearish Technicals Make It Worse

On the 2-hour chart, ADA is stuck in a clear descending channel. At $0.669, it’s facing resistance at $0.6940 (50-period EMA) and support at $0.6445. The bearish crossover of the 50-period and 200-period EMAs and the negative MACD histogram confirms the downtrend.

Cardano Price Chart - Source: Tradingview — Cardano Price Chart – Source: Tradingview

Watch for a break below $0.6640 and it could go to $0.6445 or $0.6160. Above $0.6940 and it could be a short-term bounce to $0.7157.

A Trade Setup for the Cautious Trader

For traders looking to trade, a short below $0.6640 with stop at $0.6940 and take profit at $0.6445 is a good risk-reward trade. This setup uses the descending trendline, bearish EMA alignment and MACD signals and has tight risk. Be careful, above $0.6940 it could be a reversal. Watch volume, tight stops.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.