Cardano (ADA) started the week trading below $0.220 after surging more than 24% in the previous week. The sharp rally attracted profit-taking, as traders sought to lock in recent gains, prompting questions about the token’s next move.
Profit-taking after major rally
ADA’s significant uptick followed positive sentiment in the cryptocurrency market linked to the US Treasury’s announcement to expand its debt buyback operations. The quick price rise often leads to increased selling from investors seeking to secure profits, potentially putting Cardano in a consolidation phase before any new attempt at higher levels.
Despite maintaining a constructive technical outlook, on-chain and derivatives indicators suggest that traders are adopting a more cautious stance. Analysts report that technical momentum remains intact, but recent data shows an uptick in risk aversion.
Whales reduce holdings amid market caution
Data from blockchain analytics firm Santiment indicates that large Cardano holders, commonly referred to as whales, have begun offloading their stakes. Addresses containing between 1 million and 100 million ADA have sold a combined 100 million tokens since Saturday.
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AAPLThe selling pattern suggests that significant investors are opting to realize gains after ADA’s rally. If this trend continues, increased supply on the market could weigh further on Cardano’s price in the short term.
ADA’s derivatives market also reflects mounting caution. According to data from CoinGlass, the long-to-short ratio for Cardano stood at 0.86 on Monday, its lowest in over a month. This ratio shows that short positions outnumber longs, a sign that more participants expect ADA’s price to drop or stabilize.
Wallets with large ADA balances have reduced their exposure, with 100 million tokens sold since the weekend. A long-to-short ratio below one signals cautious trading activity and rising downside expectations for Cardano’s price.
Mini dictionary: Santiment, a crypto analytics platform that tracks supply distribution, on-chain activity, and trading behavior to help investors assess blockchain market dynamics.
While increased bearish positioning does not ensure a full correction, it reinforces the likelihood of price consolidation as the market processes last week’s momentum.
| Metric | Current Level | Previous Week |
|---|---|---|
| ADA Price | $0.217 | $0.175 |
| Whale Sales | 100 million ADA | Unchanged |
| Long/Short Ratio | 0.86 | Above 1.0 |
Technical support and resistance levels
ADA remains above key moving averages, staying higher than both its 50-day EMA at $0.187 and 100-day EMA at $0.196. These levels support a positive near-term market structure.
The token has recaptured the 50% Fibonacci retracement level close to $0.213, which now serves as immediate support. ADA’s Relative Strength Index is near 60, indicating sustained buying momentum but signaling that the asset is near overbought territory.
Momentum remains intact, as shown by the MACD (Moving Average Convergence Divergence) indicator, which remains above the signal line with a growing positive histogram. However, rising RSI and recent whale activity could open the door to short-term downward adjustments.
The first notable resistance appears at the 61.8% Fibonacci retracement, found at $0.231. If Cardano breaks above this barrier, further resistance lies at $0.236 and $0.245, with the 200-day EMA at $0.249 marking a major obstacle.
A sustained move above $0.249 could signal a broader bullish reversal, potentially pushing ADA towards $0.299. On the downside, losing support at $0.213 may expose the 100-day EMA at $0.196 and the 38.2% Fibonacci retracement at $0.195.
Should additional selling occur, further support is located at the 50-day EMA of $0.187 and the next structural base at $0.173. Levels below include $0.164 and a horizontal foundation at $0.150.
Cardano’s near-term trend remains constructive as long as it holds above $0.195. Continued whale selling activity, cautious derivatives sentiment, and an elevated RSI may delay the next directional move as the market absorbs recent gains.
