The 10th-ranked cryptocurrency asset, Cardano (ADA), has seen its price drop by over 9% in the last 24 hours. The general marketwide volatility has impacted the coin severely, causing a significant drop in the price of the asset.

350 million ADA pushes Cardano’s RSI to oversold levels

According to available data, Cardano has slipped into oversold territory as holders dumped the asset amid declining value. Notably, large holders in the ecosystem offloaded about 350 million ADA on the market, worsening the situation as retail traders panicked and sold as well.

Renowned on-chain analyst Ali Martinez says the whale holdings now represent about 10% of Cardano’s circulating supply. This development increased sell pressure as the asset’s Relative Strength Index (RSI) hit 30.79.

With the price continuing in a downward spiral after breaching $0.70, retail traders joined in, dumping ADA. Now that the asset is oversold, Cardano might record short-term rebounds if it can defend the $0.60 support level irrespective of lingering market fluctuations.

As of press time, Cardano is changing hands at $0.6196, which represents a 9.09% decline in the last 24 hours. The coin briefly slipped to a low of $0.5952 but quickly regained the $0.60 support, a move critical to its recovery.

Meanwhile, trading volume is up by a massive 61.86% at $1.87 billion. This figure suggests that a recovery might be underway, but long-term stability will depend on Bitcoin staying above $100,000. Additionally, whales need to stop dumping on the market for a full recovery to happen.

Analyst, Hoskinson: Stay bullish on Cardano’s long-term ooutlook

Interestingly, before broader market fluctuations were triggered by geopolitical tensions, Martinez had predicted a bullish run for Cardano. The analyst hinted that if ADA could consolidate around $0.80, its breakout could target between $1.30 and $1.70 or nudge closer to $2.

For his part, Cardano founder Charles Hoskinson had been upbeat about the blockchain, highlighting incoming developments to the chain. He listed the Midnight Network launch, Ouroboros Leios, and partnership with Google Cloud.

These added to the bullish sentiments in the ecosystem as market participants anticipated it could impact the price outlook.

Holders are now expecting that with Cardano now oversold, the asset might begin to rebound if other market conditions align.

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