Cardano Price Dips Ahead of Wallet Provider SecondFi Liquidation
Cardano (ADA) has declined 0.72% to $0.177 following a technical breakdown of key support levels. ADA slipped below the $0.18 pivot point, with bearish momentum indicators confirming the trend and a drop beneath the 7-day moving average.
The price action indicates a failure to maintain recent gains, favouring sellers in the short term.
Currently, the 7-day relative strength index (RSI) stands at 36.19, suggesting oversold conditions, although this reflects ongoing selling pressure rather than an immediate bounce.
Furthermore, network activity appears strained, as Cardano’s total value locked (TVL) has fallen to approximately $18 million, down from $100 million.
Additionally, there was a 32.55% drop in 24-hour trading volume to $124.7 million, resulting in thin liquidity that can amplify price swings.
The lack of stable on-chain utility and reduced market depth are critical factors behind ADA’s weaker performance relative to the broader market. Observers should look for signs of ecosystem recovery, such as an increase in decentralised exchange (DEX) volume or TVL.
The immediate price outlook hinges on the crucial support level at the recent swing low of $0.1541. If ADA can hold above this level, it may attempt to reclaim the $0.18 resistance zone.
Upcoming catalysts include the SEC’s decision regarding remaining ADA ETF filings around October 23, 2026. While the trend remains bearish below $0.18, deeply oversold conditions suggest a potential technical bounce or consolidation.
In related news, Cardano wallet service provider SecondFi announced it will cease operations and is preparing a wallet migration tool along with an asset recovery process for affected users.
The migration tool will be available on August 13, allowing users to transfer Cardano assets (ADA, native tokens, and NFTs) to their own wallets.
Non-Cardano assets will require separate handling. The tool has been independently assessed for security by Bitdefender, and the recovery process is scheduled to begin before September 10, enabling users affected by the June 2026 event to claim ownership through zero-knowledge proof verification.
Elsewhere, traders reported that Bitcoin and Ethereum saw minor upward movement, with the total crypto market capitalisation hovering near $2.18 trillion. Sector data indicates a clear rotation away from GameFi and NFTs, which lost market share, while DeFi, SocialFi, and DePIN sectors saw gains, suggesting a renewed investor focus on decentralised financial infrastructure.
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