The Cardano price is down nearly 4% over the past 24 hours and remains about 33% lower over the past month. Despite this weakness, several technical and on-chain signals suggest that selling pressure is fading. The share of ADA supply in profit has dropped by roughly 75% since January, sharply reducing profit-taking incentives. At the same time, a potential reversal pattern is forming on lower time frames.
On the 4-hour chart, Cardano is forming an inverse head-and-shoulders pattern. This structure often appears near local bottoms and signals that sellers may be losing control. A downward-sloping neckline makes breakouts harder because buyers must push through falling resistance. For this pattern to activate, ADA needs a clear four-hour close above the $0.275–$0.280 zone.
On-chain data shows that selling incentives have dropped sharply over the past month. The percentage of total ADA supply in profit has fallen from above 33% in mid-January to about 8% in early February. This does not guarantee a rally, but it creates space for one to develop. On-Balance Volume, which tracks whether volume supports rising or falling prices, is still trending lower.
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