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Cardano Tests $0.25 Support as Data Shows Deep Losses and Heavy Shorts

Extreme losses for recent holders alongside heavy short positioning signal a potential squeeze.

Overview

  • Cardano trades near $0.26 Tuesday after Santiment flagged a deep on‑chain loss reading and an extreme short bias in futures.
  • Santiment puts the 365‑day MVRV near minus 43%, which means the average wallet active this past year would lock in a loss if it sold now.
  • Binance perpetual futures show the largest tilt toward shorts since June 2023, a setup that can trigger fast spikes if those bets get forced to cover.
  • Analysts point to the $0.25 area that preceded rebounds of about 85% and 200% in prior tests, yet warn a firm drop below that level would likely invite more downside.
  • Blockonomi and NewsBTC frame the pattern as a contrarian opportunity based on positioning and holder pain, while CoinJournal notes many recent buyers may sell into any bounce after a roughly 71% slide since September.