Key Takeaways
- Cardano trades near $0.24 following a prolonged two-week downturn
- Large holders added 230 million ADA tokens in the span from Wednesday through Monday
- Long-to-short positioning stands at 1.14, indicating bullish sentiment among derivatives traders
- Price action remains beneath critical exponential moving averages with RSI showing 41
- Technical analyst Ali Charts identified a channel breakdown targeting the $0.22 price level
Cardano (ADA) is hovering near the $0.24 mark this Monday, showing modest gains following a sustained two-week downtrend. The token has shed over 4% across the past seven days, while chart patterns continue displaying bearish characteristics.
Despite lackluster market performance, blockchain metrics reveal growing attention from major token holders. Data from Santiment indicates that addresses controlling 100,000 to 1 million ADA, alongside wallets holding 10 million to 100 million ADA, collectively acquired 230 million tokens between Wednesday and Monday.
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However, accumulation wasn’t universal across all whale categories. Addresses managing 1 million to 10 million ADA reduced their holdings by approximately 30 million tokens during this timeframe, suggesting potential selling pressure from this particular group.
In the derivatives arena, figures from CoinGlass indicate ADA’s long-to-short ratio has reached 1.14, marking one of its highest readings in more than 30 days. When this metric exceeds 1.0, it demonstrates that more market participants are betting on upward price movement rather than downward.
CryptoQuant metrics similarly display a predominantly neutral market environment with slight bullish undertones, showing substantial whale activity across both spot and futures trading venues.
Chart Indicators Point to Continued Weakness
Despite these on-chain developments, price charts paint a more sobering picture. ADA continues trading beneath both its 50-day and 100-day exponential moving averages, with both indicators sloping downward.
The Relative Strength Index registers 41, demonstrating weakened momentum while remaining above traditionally oversold levels. The MACD indicator has crossed back below its signal line and zero threshold, with the histogram displaying mounting bearish pressure.
The immediate floor for support rests at $0.23. Should this level fail to hold, Cardano could slide toward $0.22. For upward movement, resistance emerges at $0.26, followed by a more formidable obstacle around $0.29.
Technical Analyst Warns of Channel Violation
Cryptocurrency analyst Ali Charts shared on X that Cardano has violated its established price channel, with this breakdown creating a path toward $0.22. The observation was posted approximately 12 hours prior and corresponds with the broader bearish technical framework visible across various indicators.
ADA reached a support area around $0.237 following rejection from $0.275 earlier this week. The Chaikin Money Flow metric has plunged deeply into negative territory, indicating capital withdrawal from the cryptocurrency.
Continuous testing of the $0.23 to $0.24 support range is progressively undermining its strength. Should this zone fail, the subsequent major support level appears at $0.20.
