T. Rowe Price ETF Boost Lifts Cardano, But Rally Faces Uphill Battle

Cardano's ADA token has surged 29% in the past week to around $0.223, but a closer look at on-chain data suggests that the rally may be losing steam.

The catalyst for the advance was T. Rowe Price's decision to add Cardano exposure to its Active Crypto ETF, which trades under the TKNZ ticker, with ADA representing 0.43% of the portfolio and valued at around $81,000.

However, data from Santiment shows that large-scale selling by major holders has been underway since the weekend, with addresses holding between 1 million and 100 million ADA distributing roughly 100 million tokens during this period.

Futures market indicators also indicate a cautious tone, with CoinGlass data showing a long-to-short ratio of 0.72, approaching its lowest level in over 30 days, and an Relative Strength Index of 72, suggesting strong momentum but also overbought conditions.