Cardano's Meteoric Rise May Be Running Out of Steam

Cardano (ADA) has been experiencing a significant price increase, surging by over 29% in the previous week. However, this rapid growth may be nearing its end as on-chain and derivatives data suggest that traders are taking profits.

The large-wallet holders, also known as whales, have been reducing their exposure to ADA according to Santiment's Supply Distribution data. This metric shows that whales holding between 1 million and 10 million tokens (yellow line) and 10 million and 100 million tokens (blue line) have shed 100 million tokens since Saturday.

Furthermore, CoinGlass' long-to-short ratio for ADA reads 0.72 on Monday, nearing the lowest level in over a month. This indicates bearish sentiment in the market as more traders are betting on the asset's price to fall.