Cardano (ADA) Price Struggles at Multi-Year Support While Whales Snap Up 270M Tokens

Key Takeaways

• Cardano is currently priced at $0.2449, resting on a crucial support zone dating back multiple years
• Futures market indicators reflect pessimism — declining open interest and negative funding rates
• Large wallet holders added 270 million ADA between midweek and Friday’s close
• The Cardano network continues to see daily active users below 900, significantly under previous peaks
• Technical analyst Ali Charts identifies $0.245 as the pivotal support threshold to monitor

As of this writing, Cardano (ADA) is changing hands at $0.2449, clinging to a support zone that has held significance since 2022. Over recent sessions, the token has shed close to 6%, effectively erasing gains that emerged earlier in the week.

Price movement has largely been range-bound throughout February. This week’s session saw selling pressure intensify, driving ADA back toward the bottom boundary of its established trading channel.

The cryptocurrency is presently positioned beneath both its 50-day and 100-day Exponential Moving Averages (EMAs). On the daily timeframe, the Relative Strength Index (RSI) registers approximately 43, dipping below the neutral 50 threshold and indicating subdued bullish momentum.

Meanwhile, the MACD indicator has crossed beneath its signal line around the zero mark. This technical development confirms the absence of robust buying interest and indicates ADA continues navigating through a prolonged correction.

Futures Open Interest has contracted to $402.94 million, experiencing a steady decline since the middle of March. This reduction reflects diminishing market participation and validates a conservative short-term perspective.

According to CoinGlass, the current long-to-short ratio stands at 0.83, marking its lowest reading in more than 30 days. When this metric falls below 1.0, it indicates that more market participants are betting on downward price movement rather than upward.

Additionally, funding rates have turned negative at -0.0015%. Under these conditions, short position holders compensate long position holders to maintain their trades, demonstrating that pessimistic sentiment prevails in the derivatives landscape.

Large Holders Increase Positions Near Support Zone

While derivatives markets flash warning signs, blockchain data reveals a more complex picture. Addresses containing 100,000 to 1 million ADA, alongside those holding 10 million to 100 million ADA, collectively acquired 270 million tokens from Wednesday through Friday.

Meanwhile, wallets managing 1 million to 10 million ADA reduced their holdings by approximately 20 million tokens over the same timeframe, suggesting this segment may have surrendered positions while bigger players purchased at lower levels.

According to CoinGlass metrics, there’s considerable buying support clustering around $0.24, with whale participants establishing $31 million in net long exposure through Binance and OKX perpetual contracts. Spot trading volumes, however, continue at modest levels, potentially signaling that major buyers await clearer trend direction before increasing exposure.

On-Chain Engagement Stays Muted

Throughout March, Cardano’s network engagement has displayed persistent weakness. Since mid-December, daily active users have consistently registered below 900, a stark contrast to the tens of thousands the platform routinely saw during more active periods.

Cardano address count has experienced modest growth, expanding from 4.3 million to 4.44 million, potentially signaling gradual accumulation at reduced price levels during this consolidation period.

Critical Support and Resistance Zones

Looking at downside risk, initial support is located at $0.24. Should ADA close below this threshold on a daily basis, it would expose the $0.23–$0.22 range. For upside potential, the nearest resistance barrier appears at $0.27, with a more substantial obstacle positioned around $0.30.

Technical analyst Ali Charts has highlighted $0.245 as the crucial support zone deserving attention for ADA, which corresponds closely with current trading levels.

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