- Cardano is attempting to stabilize after falling more than 21% over the past two weeks.
- Derivatives data remains cautious, but on-chain activity and technical indicators hint that selling pressure may be fading.
- Holding above the critical $0.140 support level could determine whether ADA begins a meaningful recovery.
Cardano is showing early signs of finding its footing after one of its steepest pullbacks in recent weeks. The cryptocurrency is trading around $0.145 on Monday after tumbling more than 21% over the last two weeks, leaving traders searching for clues about where the market heads next.
Although overall sentiment hasn’t fully recovered, several indicators suggest the worst of the selling may be starting to ease. The coming days could prove crucial, especially if ADA manages to defend one of its most important support zones.
Derivatives Traders Remain Cautious
The derivatives market continues to lean bearish, even as Cardano attempts to stabilize.
According to CoinGlass, ADA’s long-to-short ratio has fallen to 0.72, its lowest reading in more than a month. A ratio below one means more traders are betting on lower prices than higher ones, highlighting the cautious mood still hanging over the market.
Funding rates also paint a similar picture.
After turning negative over the weekend, Cardano’s funding rate now sits around -0.0055%. In practical terms, this means traders holding short positions are paying those holding longs, a setup that generally reflects bearish positioning across perpetual futures markets.
Taken together, these metrics show that many traders remain unconvinced the correction is over.
Whale Activity Offers a Brighter Signal
Despite the weak derivatives outlook, on-chain data tells a slightly more encouraging story.
According to CryptoQuant, Cardano’s spot market has recently seen an increase in large whale orders while most other network metrics remain relatively neutral.
Large purchases from whales don’t always trigger immediate rallies, but they often suggest that bigger investors are quietly accumulating during periods of fear rather than chasing prices higher later.
That shift has led some analysts to believe ADA could be laying the groundwork for a gradual recovery if broader market conditions improve.
Cardano Must Defend the $0.140 Support Level
From a technical standpoint, Cardano’s most important battle is happening around the $0.140 level.
ADA briefly found buyers there over the weekend and has managed to hold above that psychological support, preventing another sharp leg lower.
Even so, the broader trend remains bearish.
Cardano continues trading well below its 50-day, 100-day and 200-day Exponential Moving Averages, which currently sit near $0.1904, $0.2248 and $0.3006. Those moving averages continue acting as major resistance and remind traders that the larger downtrend is still intact.
Momentum indicators, however, are beginning to improve.
The Relative Strength Index has dropped to around 29, placing ADA deep inside oversold territory. Historically, readings this low often appear near the end of strong selling waves, although they don’t guarantee an immediate reversal.
Meanwhile, the MACD has started to turn slightly positive, suggesting bearish momentum is beginning to weaken. For now, though, the signal points more toward stabilization than a confirmed breakout.
If Cardano loses the current support area and closes below $0.145, attention would quickly shift toward the $0.140 level, followed by the structural support near $0.1382.
On the upside, the first resistance zone sits between $0.1726 and $0.1737, where a descending trend line meets the 23.6% Fibonacci retracement level.
Should buyers push beyond that region, the next targets would be the 50-day EMA around $0.1904 and the 38.2% Fibonacci retracement near $0.1957.
Beyond those levels, ADA faces additional resistance around $0.2134, followed by the 100-day EMA at $0.2248. A heavier supply zone stretches between $0.2312 and $0.2565, while the strongest long-term resistance remains near $0.3000, where the horizontal barrier and 200-day EMA converge.
For now, Cardano’s recovery depends on one simple condition: buyers must continue defending the $0.140 support zone. If they succeed, the chances of a broader rebound improve considerably. If not, another wave of downside pressure could arrive before the market finally finds its footing.
