ADA Traders Remain Cautious as Token Tests Key Support Zone

Cardano's ADA token has been trading near an important support zone after suffering a correction of over 10% in the previous week.

The decline is being reinforced by selling among some of Cardano's largest holders, with wallets holding between one million and 10 million ADA offloading approximately 200 million tokens since August 11.

However, smaller whales have moved in the opposite direction, accumulating around 10 million tokens over the same period. The imbalance suggests that demand from smaller whales has not been sufficient to absorb the selling pressure created by top-tier holders.

Cardano's derivatives market also reflects weakening confidence among traders, with a long-to-short ratio of 0.92 on Monday, close to its lowest level in more than a month. A negative funding rate of -0.0018% further indicates bearish sentiment in perpetual futures markets.