Cardano’s price has recently experienced a notable decline, dropping to $0.60 after failing to recover from earlier gains. This downtrend was triggered by a wave of selling from long-term holders (LTHs), which caused a shift in investor sentiment and reversed the recent upward momentum of the asset. As selling pressure intensifies, the market has shifted from a cautiously optimistic outlook to a more bearish sentiment.

The primary catalyst for this decline is the increased selling activity from long-term Cardano holders. The Age Consumed metric, which tracks the movement of older tokens, has spiked in recent days, indicating that many LTHs have decided to sell their holdings. These long-term investors likely took advantage of the brief price rally earlier in the week, deciding to cash out and avoid further losses. As a result, the market has been overwhelmed by selling pressure, which contributed to the sharp drop in price.

This trend of selling signals a shift in the market psychology of Cardano holders. Historically, LTHs tend to hold on to their assets during times of market uncertainty, but the current downtrend seems to have made them more cautious. As a result, their decision to sell is heightening bearish sentiment and triggering further declines in the price of ADA. The increase in selling volume has caused the market to pivot from optimism to a more cautious and bearish stance.

Technical indicators are also showing signs of weakness for Cardano. The Relative Strength Index (RSI), which measures the strength of price momentum, has remained below the critical 50 line. This suggests that despite brief attempts to push into bullish territory, Cardano has not been able to gain enough momentum to break through and sustain a recovery. The inability to push the RSI above 50 indicates that selling pressure from LTHs is still weighing heavily on the asset, contributing to its continued downward trajectory.

With the RSI stuck below 50, Cardano remains in a bearish phase. This technical indicator suggests that further price declines could be on the horizon, as market sentiment remains weak and investors remain cautious. Any potential recovery would require a shift in momentum, which, at this point, seems difficult to achieve given the current market conditions.

At its current price of $0.60, Cardano has failed to reclaim $0.63 as a key support level, which had previously been an area of interest for bulls. The selling activity from LTHs has added significant downward pressure, preventing the asset from maintaining or recovering above this level. If Cardano fails to regain $0.63, the next support level lies at $0.57. A breakdown below this support could lead to further losses, extending the downtrend and potentially delaying any meaningful recovery in the near future.

Despite the bearish outlook, there is still hope for a potential recovery. If Cardano can reverse its momentum and reclaim $0.63 as support, this could mark the beginning of a recovery. Such a move would open the door for a potential rise toward $0.70, as market sentiment could improve, and LTHs may regain confidence in holding the asset. However, this recovery seems unlikely unless the selling pressure from LTHs subsides and the overall market conditions improve.

In conclusion, Cardano’s recent price decline to $0.60 highlights the significant impact that long-term holder sell-offs can have on the market. The combination of increased selling activity and the failure to reclaim critical support levels has created a bearish outlook for ADA. If the selling pressure continues, Cardano may test lower support levels at $0.57, but a reversal and recovery could occur if it manages to reclaim $0.63 and build momentum toward $0.70.