Why Cardano is facing a 20% price drop, and what it means for ADA’s future

By: ambcrypto|2025/05/06 22:15:01
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$5.56 million worth of long positions will be liquidated if ADA falls below the $0.65 level. Whale transactions ranging from $1 million to $10 million have dropped by 83.54%, indicating a lack of confidence. Amid market uncertainty, Cardano [ADA] is on the verge of a notable price decline as it approaches a key support level at $0.65. This continued price drop raises concerns about the potential liquidation of long positions if the asset fails to hold this crucial support. ADA was trading near $0.657 at press time, having recorded a 3.75% price decline over the past 24 hours. With the drop, participation from traders and investors has surged, leading to an increase in trading volume. According to CoinMarketCap data, ADA’s trading volume during the same period has risen by 12%, indicating strong downside momentum for the asset. Major liquidation areas Looking at the trend, it appears that if this downside momentum continues, traders could face millions of dollars worth of asset liquidations, as reported by the on-chain analytics firm Coinglass. Traders have been over-leveraged near the $0.65 lower side (support)and the $0.676 upper side (resistance), having built $5.56 million worth of long positions and $10.33 million worth of short positions at these levels. Source: Coinglass If the current market sentiment remains unchanged and ADA’s price continues to fall, breaching the lower boundary, there is a strong possibility that long positions worth $5.56 million could be liquidated. Whales participation drops Another metric currently strengthening ADA’s bearish outlook is the declining participation from whales and institutions. According to the on-chain analytics tool IntoTheBlock, whale transactions worth $1 million to $10 million have dropped by 83.54%. Source: IntoTheBlock Additionally, transactions from investors in the $1,000 to $10,000 and $10,000 to $100,000 ranges have also declined significantly by 65.20% and 60.86%, respectively. This drop in whale and investor participation indicates a lack of confidence and interest in ADA, which could push the asset’s price lower in the coming days. Cardano price action and technical analysis According to expert technical analysis, Cardano was on the verge of a massive price crash at press time, as it approached the key support level of $0.65. On the daily chart, this level has previously acted as strong support and often led to price reversals, but this time, it appeared more challenging. Source: TradingView Based on recent price action and historical patterns, if the asset fails to hold the key support level at $0.65 and closes a daily candle below it, it could open the path for a 20% price decline. So, ADA could potentially drop down to the $0.52 level. ADA’s Relative Strength Index (RSI) stood at 44 and appeared to be heading toward the oversold area at press time, indicating weakening buying pressure and a possible continuation of the bearish trend. Share Share Tweet

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On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.


2025 Full-Year Financial Highlights


Revenue: Expected to be between $39 million and $41 million, reaching a new company high.


Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.


Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.


Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.


Core Consumer Food Business Performance


In 2025, DDC's core consumer food business maintained strong operational performance.


The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.


In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.


Bitcoin Reserve Update


In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.


As of December 31, 2025: The company holds 1,183 BTC.


As of February 28, 2026: Holdings increased to 2,118 BTC


Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC


DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."


Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation


About DDC Enterprise Limited


DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.


The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.


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