Cardano price is starting to cool off after a sharp rally last week. At the time of writing, ADA is down 3.59%, trading around $0.78. This dip comes after a 19% price surge, and signals that many holders may be locking in profits.
On-chain metrics also point to a potential pullback. Dormant wallets have become active again, raising concerns that long-term holders could be preparing to sell.
Dormant Wallet Activity Signals Selling Pressure
Data from Santiment shows a spike in the Network Realized Profit/Loss (NPL) indicator. This tool tracks whether traders are selling at a profit or loss. A strong spike suggests that many ADA holders are selling at a profit, increasing sell pressure on the market.
Additionally, the Age Consumed index, which tracks movements from long-dormant wallets, also shows a large uptick. Historically, these spikes have preceded local price tops, especially when coins are transferred to exchanges.
The most recent spike is the largest since mid-April, signaling that ADA may be headed for another price drop.
Market Sentiment Turns Bearish
Bearish signals don’t stop there. Coinglass data shows Cardano’s long-to-short ratio has dropped to 0.84, its lowest in over a month. This ratio falling below 1 means more traders are betting against ADA, expecting further declines.
Technical Indicators Show a Possible Pullback
Cardano recently broke above its 200-day EMA at $0.71, rallying more than 25% before hitting strong resistance at $0.84. This level also aligns with the 50% Fibonacci retracement zone, making it a key resistance point.
Unless ADA can break above $0.84, its price might fall back to test support at $0.71. The Relative Strength Index (RSI) has also turned lower, currently at 61, after being rejected from the overbought zone.
If the RSI falls below 50, it would confirm bearish momentum and a potential slide in Cardano price. However, a close above $0.84 could open the door for a move toward $0.92, the 61.8% Fibonacci retracement level.
Conclusion
For now, the Cardano price trend shows early signs of a pullback. Traders are taking profits, dormant wallets are waking up, and momentum is starting to fade. Unless ADA regains bullish traction and breaks past resistance, a retest of $0.71 support looks likely.
