Cardano (ADA) price has dropped below $0.16 for the first time since December 2020, and it trades at $0.163 today, June 5. This drop coincides with a bottom pattern that has appeared again after being seen for the first time in December 2022.
ADA is also down by 30% since June 1 because of intense selling from fear that the closure of TapTools and JPG Store means that Cardano is dying.
TapTools and JPG Store closing down have also made Cardano founder Charles Hoskinson say that he will be stepping back ahead of a governance vote that will end on June 9.
Cardano Mirrors 2022 Bottom Signal After 30% Crash
A previous Cardano price analysis by CoinGape in late May noted that ADA had been approaching a death cross that was later confirmed on June 5.
This cross usually draws in bears. But this is not what happened when it last appeared in December 2022 after ADA faced one of its steepest crashes in history, moving from $3.10 in August 2021 to $0.23 in December 2022.
Four months after confirming the cross, ADA price moved from $0.23 to $0.46.
The daily chart shows the cross appearing again this week, and it coincides with a 30% crash in Cardano price in just five days. That suggests the price may have reached a bottom after falling to the lowest level in six years at $0.16.
On-Chain Activity Spikes Ahead of June 9 Governance Vote
Santiment notes that the daily active addresses on Cardano have risen to the highest level since April 2026 at 28,459. These addresses are rising four days before the community votes again on June 9.
The rising addresses show that people are still interacting with ADA despite the bearish long-term Cardano price outlook caused by projects closing and the ongoing governance issue.
Hoskinson has previously asked these voters to give some money to struggling dApps like TapTools that are closing down despite helping Cardano grow for the last six years.
But his remarks are attracting a lot of criticism, and Hoskinson now says he will “take a break: from talking about Cardano on videos or on X.
Technical Outlook: Key Levels to Watch in Cardano Price
Cardano price faces the next support at $0.152 after dropping by 30% in the last five days. This support was first formed in February 2021 after ADA cooled off after three straight weeks of gains.
The RSI reading that is at an all-time low of 27 shows that Cardano is under the grip of bears. That confirms that the drop that has taken ADA to the lowest level since 2020, of $0.16, is because of sellers.
Cardano price might find support at $0.152 if sellers are at the point of exhaustion. If people start buying here, it faces a psychological obstacle at $0.20.
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