Cardano (ADA) is facing renewed selling pressure as demand for leveraged positions cools and large holders continue to reduce their exposure, according to analysis shared by market analyst Ali Charts on X. Futures open interest has fallen 9% over the past week, while whales have offloaded approximately 90 million ADA since September 20. Ali identified $0.24 and $0.21 as the key levels to watch as the correction continues, noting that ADA risks deeper losses below $0.24 if decline extends.

Futures Demand Cools as Whales Sell

Ali Charts reported that Cardano's futures open interest declined from $1.99 billion to $1.81 billion over the past week. Open interest tracks the total value of outstanding futures contracts, so a decline of this kind generally read as leveraged positions being closed rather than new speculative flow entering the market. The contraction suggests traders are reducing their leveraged exposure to the token at a time when spot-side distribution from large wallets is also underway.

Large holders have offloaded roughly 90 million ADA since September 20, and Ali estimated the value of these sales at approximately $22.5 million, adding to the recent selling pressure. Whale balances are closely followed by analysts because sizable wallets can move significant supply at once, making their distribution a widely used gauge of where large capital is positioned.

The decline in futures demand coincided with a Tom DeMark Sequential sell signal on Cardano's daily chart. The signal appeared on September 26, and ADA has declined 10% since. The Tom DeMark Sequential is a timing tool designed to flag potential exhaustion points in a trend, which is why analysts often use its signals to frame where a move may be losing steam. Ali noted that the correction may continue, identifying $0.24 and $0.21 as levels to monitor.

ADA Consolidates After September Recovery

On the four-hour chart, per TradingView data, ADA traded at $0.2435 after recovering from its September 16 low near $0.190–$0.195. The token climbed through $0.21, $0.23, and $0.24 before reaching approximately $0.258–$0.260 between September 23 and 26.

ADA has since struggled to hold those highs and has mainly traded between $0.24 and $0.26. The latest candle opened at $0.2439, reached a high of $0.2445, and touched a low of $0.2432 before closing at $0.2435, down 0.16%.

Trading volume stands at approximately 2.68 million ADA, below the larger spikes recorded during the September rally. The $0.25 level remains an important pivot, while $0.26 represents visible resistance.

Momentum Indicators Point to Continued Pressure

ADA's relative strength index (RSI) sits at 45.52, below its average of 50.13. This places momentum under the neutral 50 level, although it remains above oversold territory.

The MACD also reflects short-term weakness, with its value at -0.0008, below the -0.0002 signal line. Its histogram reads -0.0006.

A sustained move above $0.25–$0.26 could reopen higher levels. However, losing $0.24 could expose support near $0.23 and the $0.21–$0.22 region, aligning with the levels Ali identified. Beyond the chart, shifts in futures open interest and whale holdings offer a way to track whether the deleveraging and distribution described above are persisting or tapering off.