A major Cardano investor lost approximately $6 million in seconds while attempting to swap 14.4 million ADA for the USDA stablecoin. According to analysis from crypto investigator ZachXBT, the massive loss was the result of executing the trade on a decentralized exchange with insufficient liquidity to handle such a large order.

The incident serves as a stark reminder of the risks associated with thin liquidity pools. When a pool lacks the depth to absorb a large trade, it can cause severe price slippage, where the final execution price is drastically different from the expected price. Experts are highlighting the event as a critical lesson for traders to always verify a liquidity pool’s capacity before committing to a major transaction.

ADA Price Struggles Below Key Resistance

The costly trading error occurred as Cardano’s market trend continues to show significant weakness. The price of ADA extended its slide last week, cementing what analysts describe as a new phase of bearish pressure. After holding the critical $0.60 support level for months, the token finally broke below it.

This breakdown is significant because the $0.60 level has now flipped from support to resistance, indicating that sellers have gained control. According to market analysis, the longer ADA fails to reclaim this price point, the higher the probability of a continued downward drift.

This decline is part of a broader downtrend that began after Cardano reached its cycle peak of $1.33 in December 2024. Since that high, ADA has been trading within a descending parallel channel. While such patterns often resolve in an upward breakout, that has not materialized. Adding to the pressure, the token also fell below the $0.72 horizontal zone, which previously acted as support and is now another layer of resistance. Without a decisive move back above the $0.60 zone, the long-term outlook for Cardano remains tilted to the downside.

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