The cryptocurrency market experienced a volatile start to the week, with initial gains giving way to a broader sell-off. While Bitcoin briefly touched $70,000 and Ether approached $2,200, Cardano's ADA has become a focal point of market pressure. After briefly racing above $0.2500 on Monday, ADA has since dropped below that level, trading around $0.24 on Tuesday and marking a 4% loss in 24 hours, making it the worst performer among the top 20 cryptocurrencies.
On-chain data from Santiment reveals a significant divergence: despite the price weakness, the number of wallets holding at least 10 million ADA has climbed to 424, a four-month high. This represents an increase of over 5% in the last nine weeks, suggesting large-scale investors, or "whales," are accumulating during the downturn, which historically can signal a potential turning point.
However, the derivatives market tells a different story. Data from CoinGlass shows ADA futures Open Interest (OI) has fallen roughly 8% in 24 hours to $405 million, with long liquidations totaling $701,830. The OI-weighted funding rate has turned negative to -0.0132%, indicating short sellers currently dominate and pay a premium to hold their positions, reflecting a near-term risk-off sentiment among traders.
Technically, ADA is at a critical juncture. The price is trading below the 50-day and 100-day Exponential Moving Averages (EMAs), keeping the broader downtrend intact. Analysts note ADA is testing a crucial support range between $0.22 and $0.28, with immediate support at the March 29 low of $0.2328. A break below could see a retest of the February 5 low at $0.2205. Conversely, a reclaim of the 50-day EMA at $0.2681 could open a path toward resistance at $0.2772 and the February 1 high of $0.2992. Some analysts point to a potential double-bottom pattern forming, which could signal a larger cycle shift if confirmed.
