Cardano sinks to $0.14 six-year low as SecondFi exploit hits ADA

Cardano's native token fell to its lowest level since December 2020 after a security breach at its largest wallet provider triggered a selloff that erased the last remaining support zone.

Cardano dropped 4.2% to $0.139 on June 24, its lowest point in six years, before recovering slightly to trade near $0.146 as of 12:00 UTC on June 26. The move came after SecondFi, Cardano's largest wallet provider, suffered a security exploit that drained about 16 million ADA, worth roughly $2.4 million, according to EMURGO, one of Cardano's founding organizations.

"The real impact was limited to 374 wallet addresses across four separate incidents within 72 hours starting June 22," EMURGO said in a statement on X. The firm said it has set up a restoration fund and is pursuing independent audits, while SecondFi remains in maintenance mode. EMURGO also flagged possible legal action, noting that compromised wallets are considered permanently lost.

The $0.148 to $0.150 support zone, which had held since early June, is now acting as resistance, according to crypto analyst BullifyX. The weekly Relative Strength Index sits at 28, below the 31.90 signal line, indicating oversold conditions without a confirmed reversal. On the daily chart, the TD Sequential indicator has flashed a buy signal, though analyst Ali Charts warned it could be a "bull trap rather than a real bottom," with any recovery likely to stall between $0.160 and $0.176.

DeFi TVL and CME volumes tell a different story

Despite the price decline, Cardano's DeFi total value locked increased by 17 million ADA during the same period, DefiLlama data shows, suggesting that long-term holders are not exiting en masse. Separately, CME Group's ADA futures volumes have surged, pointing to growing institutional interest even as retail sentiment weakens.

The divergence between price action and on-chain fundamentals creates an unusual setup. If ADA reclaims the $0.148 to $0.150 resistance zone, the short-term structure could improve, with the next target at $0.155 and then $0.161. A failure to hold above $0.138, however, would open the door toward $0.136 and then $0.127, according to Fibonacci extension levels tracked by analyst Crypto CCK.

For now, the market remains in a bearish structure. The daily Moving Average Convergence Divergence indicator sits below the zero line, and the RSI at 38.72 on the daily timeframe shows sellers still in control. Cardano needs to close above $0.150 with volume to signal a potential trend change. Until then, any bounce is likely to face selling pressure near resistance.

The SecondFi incident has also drawn attention to security standards across Cardano's DeFi ecosystem. With EMURGO pursuing audits and possible legal remedies, the episode may accelerate protocol-level security requirements for wallet providers building on the network. That could raise the bar for new projects but also slow the pace of ecosystem expansion in the near term.

This article is for informational purposes only and does not constitute investment advice.