ADA consolidates sideways, long-term holders sell off, speculators enter — below is the market landscape.

CoinNetwork · 2026-01-12T04:23:32+00:00

Cardano's ADA is trading within a descending wedge pattern, holding the support level at $0.383. Long-term holders are increasing their positions, while short-term holders are reducing their sell-offs, indicating speculative capital absorbing supply. The market remains significantly bullish, with increased downside risk. Key levels are $0.437 (bullish breakout) and $0.351 (deep correction signal).

CoinNetwork

2026-01-12 04:23:32

Abstract generation in progress

Cardano (ADA) is currently trading within a technically bullish descending wedge pattern, holding the support level at $0.383. However, on-chain data shows a shift in buyer composition: long-term holders (holding for 365 days to 2 years) significantly increased their share by 135% on January 9, while short-term holders (holding for 30 to 60 days) reduced their sell-off by 92%. This indicates that as patient capital exits, speculative capital is absorbing supply. Due to a notable long bias in derivatives positions — with long leverage liquidations at $26.66 million and shorts at $14.11 million — the market faces greater downside risk if market sentiment shifts. Key levels to watch are: a daily close above $0.437 to confirm a bullish breakout, or a drop below $0.351 to signal a deeper correction.

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