Cardano (ADA) price drops to $0.16 as long-term holders sell off tokens
June 10, 2026
Cardano (ADA) continues to face significant downward pressure, hovering around $0.16 on Wednesday after a drastic 30% drop last week. It seems that investors are losing confidence, and there is a noticeable decline in retail involvement. However, data from on-chain activity indicates that the recent surge in selling by long-term holders may be slowing down, signaling a potential turning point in the market.
According to Santiment, there have been several instances of previously inactive ADA moving back into circulation in early June. Notably, there have been transactions of over 20 billion ADA and one massive movement of 40.6 billion ADA on June 9, the largest recorded during this recent sell-off. This sudden increase in activity has disrupted the increasing average age of ADA wallets, indicating that long-dormant addresses are now actively selling or moving their coins. While there may still be more selling ahead, these spikes in dormancy are often seen as signs of capitulation, suggesting that the selling pressure may be reaching its peak.
Furthermore, retail and derivatives data also support the current bearish trend. CoinGlass data shows that Cardano futures open interest has dropped to $348.55 million, the lowest level since November 2024, down from $585.35 million in mid-May. A decrease in open interest typically indicates that traders are closing leveraged positions and reducing their exposure to risk, which dampens the likelihood of a rapid recovery driven by speculative trading.
From a technical perspective, ADA’s short-term outlook remains unfavorable for buyers. The market slipped below $0.16 following a brief bounce to $0.1745 earlier this week. Momentum indicators such as the Relative Strength Index (RSI) hovering around 39, nearing oversold conditions, and the MACD below the zero line suggest a continued bearish sentiment. While there may be intermittent relief rallies, there are no clear signals of a sustained reversal at this time.
Key price levels to monitor include reclaiming the high of $0.1745 as an initial step, followed by breaking above the psychological barrier of $0.20 and, ultimately, the zone between $0.2205 and $0.2275 to shift the bearish narrative. Conversely, a drop below the low of $0.1486 from last Saturday could lead to a more significant decline towards the longstanding support level around $0.10.
In conclusion, Cardano’s recent downturn has triggered dormant supply to re-enter the market and has dampened speculative interest, resulting in a cautious market outlook. While signs of on-chain capitulation suggest that selling pressure may be reaching its peak, a return of traders and the reclaiming of key technical levels are necessary to mitigate downside risks and pave the way for a potential recovery.
