Cardano stalls as long-term selling rises and derivatives widen downside risk

Beincrypto reports Cardano's ADA is testing breakout support after a failed breakout attempt, slipping about 2% over the past 24 hours and trending lower since January 6.

ADA remains inside a falling wedge that has held since early November and has defended the $0.383 support zone. Momentum saw the Money Flow Index rise while price fell, suggesting dip buying beneath the surface. On-chain data shows long-term holder selling jumped roughly 135% on January 9 (from about 1.92 million ADA to 4.51 million), while 30–60 day holders cut selling by nearly 92% (from about 55.42 million ADA to 4.28 million). Binance ADA-USDT perpetuals show cumulative long liquidation leverage near $26.66 million versus $14.11 million for shorts, placing long exposure about 89% higher.

To revive the bullish case, ADA needs a daily close above $0.437 to break the descending trendline and reopen the wedge's projected 49% upside. A break below $0.351 would weaken the wedge and expose $0.328 as the next major support; losing those levels would confirm that recent stability was distribution rather than accumulation. For now the wedge and momentum are intact, but support may be fragile if speculative capital withdraws.

Key Topics

Crypto, Cardano, Ada, Binance, Money Flow Index, Long-term Holders