The Cardano price is up 2.9% in the past 24 hours, showing surprising strength while most top altcoins remain flat. But on the 7-day chart, ADA is still down over 12%.

ADA’s short-term chart shows a strong bullish pattern with upside potential. But if we zoom out or check on-chain data, there’s a visible weakness forming beneath the surface. A bullish pattern alone isn’t enough—especially when key support metrics are vanishing. Cardano may be holding structure, but it’s losing critical ground.

Cardano’s 90% Drop in Outflow Hints at Buyer Weakness

Over the past few days, net outflows from ADA spot exchanges have slowed drastically. At its local peak, Cardano recorded $40.07 million in daily outflows: a clear sign of strong buying conviction, as traders were pulling coins off exchanges.

That conviction has faded. By August 21, ADA’s net outflow dropped to just $3.56 million. That’s a 91% decline from peak demand. While this still represents net outflow, the plunge in size suggests buyers are stepping aside. There’s still no aggressive inflow, but momentum has stalled.

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Too Many Longs? Leverage Stack Could Add Fuel to the Fire

Liquidation map data shows ADA’s long positions are stacked dangerously tight. On Bitget, over $174.80 million in long leverage is built up, compared to just $73.56 million in shorts.

The biggest leveraged cluster sits near $0.83 to $0.85, meaning if the Cardano price drops to that range, liquidations could snowball. Even though too many Long positions signify positive bias but an imbalance as this can lead to a long squeeze.

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Author: Ananda Banerjee