Cardano’s (ADA) recent price surge is facing new challenges as trader interest wanes and large holders start to exit their positions.
According to Ali Charts on X, futures open interest for ADA has decreased by 9% in the past week, dropping from $1.99 billion to $1.81 billion as traders reduce their leveraged bets.
Additionally, whales seem to be taking profits, with large holders selling off approximately 90 million ADA, valued at around $22.5 million, which is contributing to the selling pressure.
These developments coincide with a Tom DeMark Sequential sell signal appearing on Cardano’s daily chart, leading to a 10% decline in ADA’s price so far, with potential further correction ahead.
Analysts suggest that $0.24 is a crucial mid-range support level, and if breached, ADA could target the lower boundary of the parallel channel near $0.21.
If $0.21 holds, it might offer a buying opportunity, aiming for the channel top around $0.28.
Shifting focus to Bitcoin, Ali notes that whales have significantly reduced their BTC holdings over the past week, with a decrease of about 30,000 BTC, valued at approximately $2.52 billion.
Most of the market has been stagnant recently, prompting speculation about the intentions of large holders, who seem to be trimming their exposure to Bitcoin.
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