Cardano Price Slumps to 2020 Levels Amid Intense Selling Pressure

Cardano's (ADA) price has been experiencing significant volatility in recent weeks, with the altcoin falling 3% on Wednesday. This decline brings ADA's price back to levels not seen since December 2020.

The selling pressure on ADA remains intense, but a closer look at on-chain data reveals that the exhaustion of selling pressure from dormant long-term holding wallets may be underway. According to Santiment data, multiple spikes in dormant supply spent have been observed in early June, crossing the 20 billion ADA mark. This sudden supply dump of long-held ADA tokens has forced a pause in the average age of ADA wallets, reaffirming the exit of multiple dormant wallets.

While the investors could continue to dump their dormant supply, such spikes are considered an exhaustion signal of selling pressure, potentially preceding a turning point for ADA's price. However, technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), remain bearish, hinting that downside pressure is still dominant.