Cardano (ADA) Price Drops Below $0.28 as Whales Offload 260M Tokens—Critical Levels Ahead

TLDR

• Cardano (ADA) has slipped beneath the $0.28 threshold, declining 2.81% during Tuesday’s session
• Major holders have liquidated 260 million ADA tokens starting February 24
• Derivatives funding rates have shifted negative, indicating bearish positioning among traders
• Technical resistance from a descending trendline and key exponential moving averages remains intact
• Critical support zone lies between $0.25 and $0.26; breakdown could lead to $0.24 target

Cardano (ADA) is currently changing hands near the $0.26–$0.28 range on Tuesday, continuing a downward trajectory that’s testing important support thresholds.

The decline comes after an unsuccessful attempt to recover higher ground. ADA has shed 2.81% in today’s trading.

According to analytics platform Santiment, substantial wallet addresses have been reducing their positions. Addresses holding between 100,000 and 100 million ADA have collectively sold off 260 million tokens beginning February 24.

This magnitude of distribution creates downward momentum and eliminates buying interest that could otherwise stabilize prices.

Within the derivatives markets, ADA funding rates shifted into negative territory on Monday. Tuesday’s reading stands at -0.009%, indicating short position holders are compensating long traders—a clear indication of prevailing bearish sentiment.

Technical Barriers Remain Strong

ADA has encountered multiple rejections around the $0.29–$0.31 resistance band. Each attempt to breach this zone has encountered selling pressure.

The asset continues trading significantly below both its 50-day and 100-day Exponential Moving Averages, positioned at $0.30 and $0.37 respectively.

The daily Relative Strength Index (RSI) currently registers 43, sitting beneath the neutral 50 mark. This indicates insufficient buying momentum following the recent downturn.

The MACD indicator hovers near zero, reflecting minimal bullish momentum.

A daily candle closing above $0.29 would be necessary to alleviate current bearish conditions. A more decisive break above $0.31 would be essential to shift the short-term outlook.

Critical Support Zone Under Threat

ADA is currently trading just above an ascending trendline situated near $0.25–$0.26. This technical level has provided price support in recent weeks, though it’s facing increasing pressure from repeated tests.

Should this trendline fail, technical analysts identify $0.24 as the subsequent downside objective—representing approximately a 10% decline from present levels.

Key Technical Levels

• Near-term resistance: $0.29–$0.31
• Significant resistance: $0.32–$0.33
• Ascending trendline support: $0.25–$0.26
• Next downside objective: $0.24
• Extended support: $0.22 (established February 6 low)

The overall market environment has provided little assistance. Persistent geopolitical uncertainties have reduced risk appetite across multiple asset classes, cryptocurrency included.

As Tuesday’s session progresses, ADA continues trading beneath its descending trendline without any confirmed bullish reversal pattern emerging on the daily timeframe.

The post Cardano (ADA) Price Drops Below $0.28 as Whales Offload 260M Tokens—Critical Levels Ahead appeared first on Blockonomi.