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ADA hit a multi-year low after the SecondFi wallet security breach.
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Analysts expect continued volatility, with key support and resistance levels in focus.
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Cardano’s blockchain remained secure despite the wallet provider’s software vulnerability.
Cardano investors have endured another painful week. ADA dropped to the lowest level since 2020 after a major wallet security breach. Fear quickly spread across the market as selling accelerated. Despite recent losses, some traders believe panic may have created opportunity. Others expect further downside before any meaningful recovery begins. Technical signals now paint a mixed picture, leaving investors divided over ADA’s next move.
CARDANO: BULL TRAP?
Despite the recent security breach of a Cardano-based wallet protocol resulting in the exploit of nearly 129 million $ADA (worth roughly $20 million), the daily chart has flashed a TD Sequential buy signal.
While this indicator signals a near-term bounce,… https://t.co/Uxt4ZsERbn pic.twitter.com/d7a9inL3eQ
— Ali Charts (@alicharts) June 25, 2026
Security Breach Triggers Heavy Selling
ADA fell to $0.139 on June 24 before recovering toward $0.148. Even after that bounce, price remains under heavy pressure. The token now trades more than 95% below the all-time high. Losses have also reached 55% from the 2026 peak and nearly 75% over the past year. Much of the decline followed a security incident involving SecondFi, Cardano’s largest wallet provider. Attackers exploited a weakness inside wallet generation software across four separate attacks.
The breach affected 374 wallets during a 72-hour period beginning June 22. Hackers stole roughly 16 million ADA, valued near $2.4 million. Higher damage estimates included protected funds transferred into emergency custody. Those assets remained secure throughout the response process. SecondFi quickly fixed the software flaw for unaffected wallets.
Independent security audits continue while maintenance work remains ongoing. EMURGO also created a restoration fund for affected users. Legal action against responsible parties remains under consideration. Importantly, developers confirmed the weakness existed inside SecondFi software. Cardano’s blockchain itself remained unaffected throughout the incident.
Analysts Remain Divided on ADA’s Next Move
Market analysts now offer different outlooks. Ali Charts recently highlighted a TD Sequential 9 buy signal. Such patterns sometimes appear before short-term rebounds. However, Ali warned that any rally could become a bull trap. According to Ali, recovery may struggle between $0.160 and $0.176. Strong rejection inside that range would strengthen the bearish outlook. Another analyst, BullifyX, believes sellers currently control market direction after ADA lost support near $0.150.
Momentum indicators also reflect continued weakness. Weekly RSI currently stands near 28, remaining below the signal line. Although oversold conditions often attract buyers, confirmation of a reversal has not appeared. Several important price levels deserve close attention. Support now sits near $0.136, followed by $0.127. Losing both levels could extend the current decline. Buyers must reclaim $0.157 before confidence begins returning. Another resistance level waits near $0.17.
Cardano faces one of the toughest periods since 2020. Security concerns have damaged investor confidence despite the blockchain remaining secure. Technical indicators suggest volatility may continue. Whether current prices become a buying opportunity depends on how buyers respond around key support and resistance levels.
