Cardano is showing early signs of stabilisation as selling incentives have dropped sharply, even as the ADA price remains under pressure.
On-chain data shows the share of ADA supply in profit has fallen from about 33% in mid-January to roughly 8% in early February, cutting profit-taking incentives by around 75%.
At the same time, technical charts show ADA forming an inverse head-and-shoulders pattern that could support a rebound toward $0.34 if key resistance levels break.
On the four-hour chart, the pattern requires a sustained close above the $0.275 to $0.280 zone to activate, while a developing bullish divergence on the Relative Strength Index suggests selling momentum is weakening.
On-chain activity data also points to easing distribution, with spent coin volumes falling about 45% since the February 6 sell-off, indicating fewer long-term holders are rushing to exit.
Despite these improving signals, buying pressure remains fragile, as On-Balance Volume continues to trend lower and has not yet confirmed a decisive shift in demand.
Unless volume expands and ADA decisively clears resistance, the token linked to founder Charles Hoskinson risks another failed recovery rather than a sustained breakout toward $0.34.
At the time of reporting, Cardano price was $0.2676.