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- ADA is trading below major resistance levels, showing a long-term bias and reducing recovery attempts.
- Whalers are reducing their exposure to the ADA, which could lead to higher prices.
Cardano (ADA) continues to trade under pressure, rising below $0.250 on Friday as the price remains below major resistance areas.
Data from Santiment indicates that some whale wallets are starting to reduce their holdings, increasing the pressure to sell.
The whales reduce exposure to the changing environment
Santiment’s Supply Distribution data shows Cardano’s weakness as major wallet holders shift their positions. Whales with between 100,000 and 1 million ADA and 1 million-10 million ADA have together downloaded 80 million tokens since April 19.
In addition, wallets of 10 million to 100 million ADA have received about 60 million ADA in the same period.
The difference reflects the fleet’s flexibility: medium-sized whales are trading, while large groups are receiving food. Such behavior often indicates a high level of volatility, increasing short-term risk.
The data from Cardano offers a mixed outlook with a slight bearish bias. CoinGlass data shows open interest falling to $ 444 million on Friday, from $ 490 million on April 18. This indicates a decrease in commercial activity and weakens speculative demand.
Furthermore, the ADA long-short ratio stands at 0.80, its lowest level in a month. A ratio below 1 indicates a bearish position, with many traders anticipating a drop in prices.
Even so, the price tag provides an additional story. The weighted average OI changed on Thursday and is currently sitting at 0.0076%, meaning that long positions are paying off short positions—often interpreted as a bearish signal.
Cardano price outlook: bears continue to stall recovery
The ADA/USD 4-hour chart is bearish and useful as Cardano is still technically weak, trading below $0.250.
The currency is facing immediate resistance at the 50-day EMA of $0.258, followed by $0.269 (23.6% Fibonacci retracement) and the 100-day EMA at $0.294.
Momentum signals are neutral. The Relative Strength Index (RSI) sits at 51, while the MACD is flat above zero, indicating a lack of strong sentiment.
If the bearish trend continues, immediate support is found at $0.245. A break below this level could show ADA another loss to $0.220, a very important support area.
However, if the bulls regain control and close above the resistance of $0.258, it would be the first sign of a bearish force, which could clear the way to $0.269 and the main resistance near $0.294 and $0.299.
A bullish reversal may require a move above $0.323 and eventually to the 200-day EMA near $0.383.
