Cardano's ADA Faces Selloff Amid Broader Market Volatility

The cryptocurrency market has seen a significant shift in sentiment over the past day. After opening the week bullish, with Bitcoin and Ether reaching new monthly highs, the market has reversed course. Cardano's ADA was among the cryptocurrencies that gained value, rising above $0.2500 on Monday.

However, as the US-Iran deadline approaches, the market is experiencing a risk-off sentiment among traders. Derivatives data suggests that traders are inclined to hold short positions at a premium, with the OI-weighted funding rate dropping to -0.0132%. This indicates that sell-side dominance is present in the near term.

Despite this, on-chain data shows that whales continue to accumulate ADA for the long term. The number of wallets holding over 10 million ADA tokens has reached a 4-month high of 424, up by over 5% in the last 9 weeks. This increase in whale holding during oversold conditions could indicate a potential rebound for the asset.

The price of ADA is currently showing a mildly bearish near-term bias, trading below both the 50-day and 100-day EMAs. The MACD indicator has turned slightly positive near the zero line, while the RSI stabilizes around 53. If the selloff continues, support levels at $0.2328 and $0.2205 could be retested.