Cardano’s ADA token pulled back on Monday, trading below $0.220 as investors locked in profits after last week’s 24% rally. The broader cryptocurrency market had been lifted by the US Treasury’s decision to double its debt buyback operations, but such rapid gains often trigger selling. On-chain data from Santiment shows large Cardano wallets holding between 1 million and 10 million ADA and those with 10 million to 100 million ADA have collectively sold 100 million tokens since Saturday, increasing available supply and near-term pressure on price.
Derivatives data from CoinGlass reflects a cautious mood, with ADA’s long-to-short ratio at 0.86 on Monday, near its lowest level in more than a month. A reading below 1 means short positions outnumber longs, suggesting many traders expect further consolidation or downside. The Relative Strength Index is near 60, close to overbought territory, while the MACD remains in positive territory with an expanding histogram, indicating bullish pressure has not fully vanished.
Technically, ADA holds above its 50-day and 100-day Exponential Moving Averages at $0.187 and $0.196, and has reclaimed the 50% Fibonacci retracement near $0.213 as immediate support. Resistance sits at the 61.8% Fibonacci level of $0.231, followed by $0.236 and $0.245, with the 200-day EMA at $0.249 as the strongest barrier. A sustained breakout above the $0.231–$0.249 zone could open a path toward $0.299. A close below $0.213, however, would expose the $0.195–$0.196 support area, then $0.187, with deeper levels at $0.173, $0.164 and $0.150. Cardano’s underlying network activity remains stable, but whale selling and bearish derivatives positioning make consolidation the likely near-term scenario.
