Cardano may eye $0.34 as selling incentives drop 75%

Cardano is down nearly 4% over the past 24 hours and about 33% lower over the past month. Several on-chain and technical signals suggest selling pressure is easing: profitable ADA supply has fallen from above 33% in mid-January to about 8% in early February, a roughly 75% decline.

On the 4-hour chart an inverse head-and-shoulders pattern is taking shape, with a downward-sloping neckline. For the pattern to activate, ADA needs a clear four-hour close above the $0.275–$0.280 zone. The Relative Strength Index has printed higher lows while price made lower lows, a bullish divergence that would confirm if the next candle closes above $0.259.

Spent-coin activity has cooled since the February 6 sell-off, falling from around 168 million ADA to roughly 92 million, about a 45% decline. With fewer holders in profit and reduced coin movement, natural selling incentives have waned, which can create room for a rebound though it does not guarantee one.

cardano, ada, selling incentives, selling pressure, profitable supply, head-and-shoulders, neckline, relative strength, spent-coin, rebound