ADA Drops Below $0.62 as Whale Sell-Off Intensifies Ahead of Key SEC ETF Decision

Cardano awaits the SEC’s ETF ruling on October 26, with traders expecting institutional inflows if the application receives approval.

Over 350 million ADA was sold by whales last week, indicating large holders repositioning before the potential ETF announcement.

ADA trades near $0.67 after testing $0.65 support, while long liquidations and falling Open Interest reflect weaker bullish conviction.

Cardano (ADA) is under heavy pressure, trading at $0.6167 after a sharp 7.97% drop in 24 hours and a staggering 24.95% loss this week, market sentiment weakens as traders eye support levels and await the ETF decision.

ETF Speculation Adds to Market Buzz

Veteran trader Matthew Dixon noted a completed five-wave impulse move, with a potential bullish setup if support holds. ADA recently found support near $0.6336, aligning with the Fibonacci retracement of its previous wave, hinting at the completion of a corrective pattern.

Cardano spotlight is growing around a possible ETF approval by the U.S. SEC. The upcoming decision on Grayscale’s proposed $ADA ETF is expected on October 26

Polymarket bettors currently assign an 87% chance of approval, reflecting rising optimism. If approved, institutional capital may enter without requiring direct crypto purchases, similar to earlier trends with Bitcoin and Ethereum ETFs.

Whales appear to have made early moves. During the last downturn, large holders accumulated $89 million in ADA. This preemptive behavior suggests strategic positioning ahead of a potential market event. ADA trades near $0.67, with short-term resistance forming near $0.73.

Liquidations and Open Interest Signal Bearish Pressure

Cardano’s recent price action has been marked by a notable uptick in long liquidations. According to Coinglass, over $1.13 million in long positions were liquidated, against only $187,000 in shorts

The imbalance confirms strong downside pressure, with bulls forced to exit positions amid increasing volatility.At the same time, Open Interest fell by 2.12%, dropping to $669.89 million. This contraction reflects a retreat from leveraged positions as traders reduce risk exposure

The fall in Open Interest aligns with whale activity, where roughly 350 million ADA was offloaded over the past week.For ADA, this phase often precedes a consolidation range before renewed price strength.

Technical Levels Define Near-Term Outlook

ADA descending channel has historically served as a bounce zone, but the lack of strong buyer activity keeps short-term sentiment cautious. Resistance zones at $0.73 and $0.87 remain key barriers.Dixon’s chart analysis identifies $0.7653 as a potential target, pending a bullish reversal

ADA must reclaim the $0.73 level convincingly to regain momentum and break the bearish structure and open the path for a possible Wave 3. Until then, the market structure needs the buyers to step in and alter sentiment.

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