Key Takeaways
- On-chain metrics reveal that Cardano (ADA) NPL posted a rare spike on Thursday, hinting at ongoing profit-taking.
- Price action appears bearish, signaling a potential drop if ADA falls below $0.779.
- ADA’s upside rally would only be possible if it closes a daily candle above the $0.875 level.
Profit booking in ADA, the native token of Cardano, has intensified as the price moves sideways this week. It raises alarms over a potential correction ahead. Meanwhile, on-chain metrics and recent price action have further reinforced this outlook.
Profit-Taking Intensifies in Cardano (ADA)
Today, on-chain analytics firm Santiment revealed that Cardano’s Network Realized Profit/Loss (NPL) metric indicates ADA holders have been booking profits this week. The metrics posted a rare spike in NPL on Thursday, reaching its highest level since September 2025.
This surge suggests that ADA holders are selling their holdings for profit, which could be preventing the price from gaining momentum. Meanwhile, the derivative tool Coinglass reveals that traders have begun following the same trend. At press, the ADA long/short ratio stands at 0.81, reflecting strong bearish sentiment among traders. This ratio marks its lowest level since September 2025.
Cardano (ADA) Price Action and Key Levels to Watch
As of press time, ADA is trading at the $0.791 level, posting a 2.90% price drop over the past 24 hours, according to TradingView data. However, market participants have shown strong interest in the asset, as reflected in the trading volume, which surged 20% to $1.15 billion.
Rising volume during a price decline indicates that participants are interested in pushing the price lower. Given the weak on-chain metrics and momentum, you might be wondering where ADA could move in the coming days.
According to TimeCrypto’s technical analysis, ADA is in a downtrend and poised for a significant price dip. On the daily chart, the asset has been moving in a symmetrical triangle pattern, with the price currently at the lower trendline.
Based on the current price action, if this momentum continues and ADA fails to hold the ascending trendline and closes a daily candle below $0.779, it could see a 13.50% price decline, potentially reaching the $0.675 level in the near future. On the other hand, a reversal could also be possible, as in the past, if the ADA price holds above the ascending trendline.
At the time of reporting, the technical indicator Supertrend remains in red and is positioned above the asset price, indicating that ADA is in a downtrend with strong selling pressure. Meanwhile, the Bollinger Bands show that ADA is nearing oversold territory, but it still has enough room to continue the ongoing trend. For now, ADA holders need to watch the key levels of $0.779 on the downside and $0.875 on the upside. If either of these levels breaks, the market could see momentum in either direction.
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