Selling Pressure on Cardano Drops by 50% – On-Chain Data Analysis Reveals
March 8, 2026
Cardano (ADA) has experienced a drop of about 9% over the last week, with the digital currency hovering around $0.258 on Saturday, marking its lowest level since early 2024. Despite this decline, on-chain data and a momentum indicator on the 12-hour chart are showing signs of divergence from the price drop, prompting closer observation.
It is common for trading activity to thin out over the weekends in the cryptocurrency markets, leading to heightened short-term technical reactions in either direction. This phenomenon may be contributing to the current fluctuations in ADA’s price.
Analyzing the on-chain metrics reveals interesting trends. The percentage of ADA’s circulating supply held above its purchase price, which serves as an indicator of the number of holders in profit, has decreased to around 7.03%, down from 11.3% on March 5. A previous reading of 9.43% on March 4 preceded an 8% price move from $0.26 to $0.28 within 24 hours.
Additionally, the Spent Coins Age Band, which monitors coin movement across all holder age groups and reflects distribution activity, has witnessed a significant drop from approximately 171 million coins on February 27 to around 90 million coins, representing a reduction of about 47% and marking a monthly low. This decline in coin movement may suggest that holders are less inclined to sell at current price levels, alleviating immediate supply pressure.
On the 12-hour chart, the Relative Strength Index for ADA has shown a higher low between February 13 and March 6, contrasting with the formation of a lower low in price – a bullish divergence pattern. While this pattern does not guarantee a reversal and can be unsuccessful in sustained downtrends, it is an indicator worth noting.
Currently trading slightly above the $0.255 support level, ADA faces the $0.270 resistance band as a key obstacle that has thwarted multiple recovery attempts in early March. A sustained defense of the $0.255 level could bring the $0.270 resistance back into focus, while a breach below $0.255 may expose the $0.250 support level, potentially altering the near-term setup.
With a market capitalization of approximately $9.5 billion, Cardano’s price movements are likely to be influenced by broader market conditions, particularly the trajectory of Bitcoin. As market conditions remain uncertain, ADA’s performance over the weekend will likely be closely tied to developments in the wider cryptocurrency landscape.
