The cryptocurrency market opened the new week candle bullish, with Bitcoin and Ether all racing to new monthly highs.
Bitcoin, the leading cryptocurrency by market cap, touched the $70,000 level for the first time in nearly two weeks, while Ether approached the $2,200 psychological zone.
Cardano’s ADA also raced above $0.2500 on Monday. However, the market has since reversed, with Bitcoin now trading around $68,700.
ADA has dropped below the $0.2500 level at press time on Tuesday, amid a broader cryptocurrency market that is whipsawing ahead of the US-Iran deadline.
In addition to that, derivatives data suggests a near-term risk-off sentiment among traders, while on-chain data shows large wallet investors, commonly known as whales, accumulating for the long term.
Whales accumulate while retail traders play it safe
Cardano (ADA) is down 4% in the last 24 hours, making it the worst performer among the top 20 cryptocurrencies by market cap.
The bearish performance comes as Cardano loses strength in the derivative market after Monday’s flipped recovery.
Data obtained from CoinGlass shows that the ADA futures Open Interest (OI) read $405 million on Tuesday, down roughly 8% in the last 24 hours, confirming the reduced value of existing positions.
Meanwhile, total liquidations reach $1.10 million in the same period, led by $701,830 in long liquidations, which reaffirm a weakened bullish stance.
Furthermore, Cardano’s OI-weighted funding rate has dropped to -0.0132%, suggesting that traders are inclined to hold short positions at a premium.
The declining OI reflects sell-side dominance among traders in the near term.
Meanwhile, on-chain data shows that whales continue to expand their ADA holding, reflecting a long-term bet.
According to Santiment, the number of wallets holding over 10 million ADA tokens has reached a 4-month high of 424, up by over 5% in the last 9 weeks.
Usually, an increase in whale holding during oversold conditions indicates a potential rebound for an asset.
Will Cardano retest $0.2772 resistance?
Similar to the other leading cryptocurrencies, the ADA/USD 4-hour chart remains bearish and efficient.
ADA is showing a mildly bearish near-term bias as it trades below the 50-day and 100-day Exponential Moving Averages (EMAs).
Its poor performance is keeping the broader downtrend intact.
These downward-sloping resistance EMAs continue to cap the upside structure, with no evidence of a breakout.
Currently, ADA’s Moving Average Convergence Divergence (MACD) indicator on the 4-hour has turned slightly positive near the zero line.
Meanwhile, the Relative Strength Index (RSI) stabilizes around 53, which suggests only modest relief in momentum rather than a decisive shift in trend.
If the selloff continues, immediate support sits at the March 29 low at $0.2328. A drop below this level could see ADA retest the February 5 low at $0.2205.
If the price continues to trade below the 50-day EMA, rallies into resistance are vulnerable to renewed selling pressure.
However, if the bulls regain control and ADA reclaims the 50-day EMA at $0.2681, it would open the path toward the February 1 high at $0.2992.
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