Cardano Retraces – Profit-Taking Concerns Arise Once More

Cardano retraces – Profit-taking threat looms once again

Cardano's performance in February has been characterized by a lack of clear trend, trading within a narrow range. Despite regaining its position among the top 10 cryptocurrencies, the risk of profit-taking remains a significant concern as market dynamics shift.

Key Takeaways

Cardano (ADA) traded between $0.246 and $0.305 for most of February, with no strong trend.
It recently regained a top 10 position in market capitalization, surpassing Bitcoin Cash (BCH).
On-chain metrics indicate rising mean coin ages, suggesting accumulation, but short-term holders are seeing losses.
Profit-taking pressure could influence upcoming ADA price movements.

Cardano's Recent Price History

Cardano [ADA] has shown a lack of consistent trend throughout February, fluctuating between $0.246 and $0.305. Any brief movements above or below these key levels were quickly reversed, indicating a perplexing market state.

Cardano 4-hour Chart
Source: ADA/USDT on TradingView

As of the latest updates, ADA was trading at a midpoint between these significant support and resistance levels, with a noticeable increase in trading volume over the volatile weekend. Following gains since February 25th, Cardano successfully re-entered the top 10 cryptocurrencies by market capitalization, surpassing Bitcoin Cash, which is a considerable achievement for ADA. Still, the short-term trend appears to lack strong conviction.

Potential Profit-Taking Pressure

Cardano Santiment
Source: Santiment

Recent analysis of on-chain metrics yields insights into what traders and investors in Cardano might anticipate next. The mean coin ages for both the 90-day and 365-day periods have been on the rise since January, following a steep decline in December. Additionally, dormant circulation registered its highest level in 2025, indicating a notable number of ADA tokens moving on-chain.

This surge in dormant circulation indicates that previously inactive tokens are now being transferred. Meanwhile, the increase in mean coin ages suggests an accumulation trend among Cardano holders. In contrast, the lack of significant on-chain coin movements implies a quiet period in the network.

Current data shows that short-term holders are either nearing breakeven or cashing in profits. The 30-day MVRV (Market Value to Realized Value) ratio stands at -3.65%, indicating that buyers in the last month are facing an average loss of 3.65%. The last instance of this metric turning positive occurred when ADA prices peaked at $0.426 in early January before declining again. Meanwhile, the 90-day MVRV values remain deeply negative, reflecting a low sentiment among current holders.

Conclusion

As Cardano navigates its way through fluctuations in the market, the risks associated with profit-taking loom large. Investors should remain vigilant as on-chain metrics and market movements unfold.