Cardano’s price has entered a tight consolidation phase over the past several days. ADA is trading within a narrowing range as momentum weakens. Repeated attempts to break higher have stalled, reflecting broader caution in the crypto market.
Bearish signals dominate the short-term outlook. However, one key cohort of holders is providing support.
Cardano Is Under Pressure
The Money Flow Index shows persistent selling pressure on ADA. The indicator remains below the neutral 50 level, signaling sustained capital outflows. Weak inflows suggest that buyers are hesitant to step in at current prices.
A shift in momentum requires reclaiming the 50 mark or entering oversold territory. At present, ADA is far from both conditions. Without a strong reversal signal, selling pressure may continue to weigh on Cardano price action.
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Derivatives data reinforces the bearish narrative. The liquidation map indicates that Cardano futures contracts are skewed toward short positions. Exposure on short contracts stands near $23 million compared with $14 million in potential long liquidations.
This imbalance highlights trader expectations for further downside. Elevated short interest can increase volatility if the price moves sharply. However, current positioning suggests that many traders anticipate continued weakness rather than a breakout.
Sustained bearish positioning may amplify price swings. If ADA attempts a recovery, short liquidations could accelerate upside. Conversely, additional selling could reinforce negative momentum. For now, macro sentiment in futures markets remains defensive.
ADA LTHs Provide Relief
Long-term holders are currently offsetting part of the sell pressure. The Mean Coin Age metric is rising, indicating that older coins are remaining inactive. This trend suggests that LTHs are choosing to hold rather than distribute.
Resilience among long-term investors is crucial. Persistent holding behavior reduces circulating supply pressure. While it does not guarantee recovery, it helps ADA defend critical support levels during periods of uncertainty.
ADA Price Needs To Hold Above This Support
Cardano is trading at $0.264 at the time of writing, rangebound between $0.295 resistance and $0.256 support. The lower boundary aligns with the 13.6% Fibonacci retracement, often referred to as the bear market support floor. ADA has maintained this level for nearly three weeks.
Given current indicators, consolidation appears likely to continue. A successful defense of $0.256 could enable a rebound toward $0.278. Sustained buying may push ADA back to $0.295, testing upper range resistance once again.
However, increased selling pressure would shift the outlook. A decisive breakdown below $0.256 would weaken structural support. In that scenario, Cardano price could decline toward $0.239, invalidating the short-term bullish thesis and reinforcing bearish control.
