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- ADA is still under pressure after selling off 30% last week
- The currency can go down if the market continues.
Cardano (ADA) continues to struggle on Wednesday, trading near $0.1600 and extending losses after a massive decline of 30%.
The cryptocurrency remains under intense pressure to sell as investor confidence declines and trading participation declines.
However, data on the chain suggests that sales from long-term holders may be nearing exhaustion, which could lay the groundwork for future returns.
A slow increase gives the advantage to long-term holders
The latest data from Santiment shows a gradual increase in the ADA rate re-entering the spread in early June.
A series of spikes in food consumption exceeded 20 billion ADA, culminating in a massive movement of 40.6 billion ADA on June 9, the largest such increase to date.
The activity shows that long-term holders who remained inactive chose to move or sell their holdings amid the market weakness.
The operation also disrupted the growth of the middle age of ADA wallets, confirming that the residential addresses became active again.
Although some selling from long-term holders is possible, such spikes are often seen as events that indicate selling fatigue and often leading the market.
The selling sentiment for Cardano has been severely disrupted following last week’s decline.
Derivatives data show a decline in the importance of speculation. According to CoinGlassCardano futures Open Interest (OI) has dropped to $348.55 million, its lowest level since November 2024. This is a sharp decline from $585.35 million recorded on May 12.
A fall in OI indicates that traders are closing their positions and becoming more risk-averse, reducing the chances of a quick recovery in the near future.
ADA price analysis: Can Cardano stay above $0.1500?
Cardano is trading slightly below $0.1600, maintaining a bearish trend after reaching a high of $0.1745 on Monday.
Technical indicators continue to favor traders. The Relative Strength Index (RSI) at 39 is nearing the oversold level, which indicates strong selling.
Moving Average Convergence Divergence (MACD) remains below zero, confirming that bearish power remains strong.
Although overselling may lead to periodic support meetings, there is currently no strong evidence of a change in trends.
If the rally resumes, ADA could rise to last Monday’s $0.1745 before hitting the $0.2000 target.
A return to the $0.2205–$0.2275 range will be needed to weaken the bullish outlook.
However, if the selling continues, ADA may drop below Saturday’s low of $0.1486, with a major long-term support at $0.1000 and the target.
A break below $0.1486 could signal ADA’s further decline to the $0.1000 area.
