The price of Cardano (ADA) has seen a significant decline today. The popular altcoin has dropped a whopping 15.6% in the last 24 hours. This has caused the ADA price to fall below the important 1 USD mark and is trading at around 0.95 USD at the time of writing.
This decline is part of a broader correction in the crypto market, which has also seen major altcoins such as Ethereum (ETH) and XRP lose 6.3% and 15% of their value, respectively.
Hack on social media account
ADA’s recent crash appears to have been caused in part by a hack of Cardano’s official social media account. On December 8, the altcoin’s X account was taken over and used to promote a fake token called ADASol. The hacker attempted to trick the X account’s large following into purchasing this fraudulent coin.
Shortly after the hack, it was confirmed that the post was fake and the account had been hacked. This was shared by social media user Tempo, among others. Although the fake post has since been deleted, it seems that some of the damage has already been done. Interaction with the ADA network dropped significantly, further increasing the downward pressure on the Cardano price.
ADA breaks through several support levels
The ADA price drop has seen the altcoin break several key support levels, including the 1.10 USD and 1 USD levels. Currently, the ADA price is struggling to stay above $0.95. If the price continues to fall, a fresh crash to the next support level of 0.90 USD could follow.
No reason to panic
Although the drop is significant, it may not necessarily be a cause for concern for investors. It is not uncommon for altcoins to experience sharp corrections during a bull market. Such declines ensure that excessive leverage is removed from the market and prices have a chance to stabilize.
After a period of stabilization, the price could potentially start a new rally. For Cardano, the 1.30 USD mark is an important milestone to maintain the bull market.
