Cardano has just increased by 23% in the past week, but on-chain indicators and the balanced liquidation could signal an upcoming distribution phase.
Currently, the price of ADA may test the 3 USD level again this year or get stuck below, depending on profit-taking pressure and short-term market trends.
MAIN CONTENT
Cardano increased more than 23% this week, opening up the possibility of correction risks due to high profit-taking pressure.
TVL in Cardano's DeFi ecosystem increased by 3.44%, reflecting long-term confidence from investors.
Liquidation data shows that the market is balanced between buyers and sellers, but the bulls still have a slight edge.
Is Cardano's 23% increase a warning sign of market correction?
Based on NUPL (Net Unrealized Profit/Loss) data, ADA is currently in a high-profit zone, warning that profit-taking pressure could trigger the next decline. Expert Joao Wedson from Alphractal believes ADA may temporarily correct before rising to 3 USD or higher by the end of 2025.
The history of the cryptocurrency market shows that strong increases often lead to a sell-off phase when investors take profits to reduce risk. ADA holding the NUPL above 0 for a long time reflects that most holders are in profit, but also means that a correction phase is inevitable.
“Cardano may undergo a short-term accumulation phase before breaking through the 3 USD threshold, and the ideal selling region could rise to nearly 4.9 USD.”
Joao Wedson, CEO of Alphractal, July 2025
Source: Alphractal
Is the increase in TVL a sign of confidence or a profit-taking trap?
The TVL of Cardano in the DeFi ecosystem has increased by 3.44% in the last 24 hours, reaching approximately 313.75 million USD according to DeFiLlama, indicating that investors are still actively locking ADA for long-term rewards.
This is a positive sign from a long-term investment perspective, unlike the data on centralized exchanges where about 280,000 USD of ADA was withdrawn in the same period, signaling that some investors are taking short-term profits.
Source: DeFiLlama
Does the derivatives market truly show a balance between bulls and bears?
Liquidation data on ADA's perpetual contracts shows that the number of liquidations is almost equal between Long and Short positions, indicating a rather tense market but with a slight advantage for buyers.
The current Long-to-Short Ratio shows that 76.22% of trading volume comes from buyers, while sellers only account for 23.78%, providing hope that the correction will not be deep if selling pressure does not intensify.
Source: Coinalyze
“Balanced liquidity is showing that the bulls still hold an advantage, however, market sentiment is very sensitive to profit-taking pressure and can change rapidly.”
Market analysis by TinTucBitcoin, mid-2025
Comparison table of on-chain signals and ADA trading market
Cardano's Current Status Index NUPL Unrealized Profit Ratio, overbought indicator Around high levels, signals potential selling pressure TVL DeFi Value of ADA locked in DeFi protocol Increased by 3.44%, reaching 313.75 million USD, signaling long-term confidence Liquidation of futures Balanced between Long and Short indicating the market lacks clear direction About 4.9 million USD liquidated in both directions, slight buying advantage CEX withdrawal flow Indicates that investors withdraw coins to hold or sell Withdrawn 280,000 USD ADA after several days of accumulation, warning of profit-taking
Frequently Asked Questions
Will Cardano reach 3 USD again this year?
Experts predict that ADA may retest the 3 USD price range by the end of 2025; however, there will be accumulation and correction phases beforehand.Is the increase in TVL a definite bullish sign?
An increase in TVL reflects long-term confidence, but attention is still needed on selling pressure in the exchange to assess the overall trend.What does the balanced liquidation between Long and Short mean?
This indicates that the current ADA market is very tense, with an unclear trend, so investors need to be cautious.What is the current profit-taking pressure of ADA investors?
High NUPL data shows that many investors are in profit and likely to take profits, posing a risk of price decline in the short term.What indicators should be monitored when trading ADA?
Notable indicators are NUPL, DeFi TVL, derivatives liquidation data, and inflow and outflow on centralized exchanges.
Source: https://tintucbitcoin.com/ada-cardano-tang-23-canh-bao-dao-chieu/
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