Cardano (ADA) Price: Grayscale Raises ADA Allocation to 20.34% as Retail Investors Sell

TLDR

• Cardano (ADA) is down 4% on Monday, marking its third consecutive day of decline
• Futures Open Interest dropped 4.25% to $424.84 million, showing capital withdrawal
• The funding rate fell to -0.0138%, reflecting heavy short-side pressure
• Grayscale raised ADA’s share in its Smart Contract Fund to 20.34%, up from ~18.5% in January
• The Midnight privacy chain is set to launch by end of March, with support from Google and Telegram

Cardano (ADA) has dropped 4% on Monday, extending a three-day losing streak as macro pressures and weak retail sentiment weigh on the token.

The broader crypto market is feeling the heat from renewed US tariff concerns and political tensions involving President Trump and the Supreme Court. ADA is caught in that wider pullback.

Futures data from CoinGlass shows Open Interest at $424.84 million, down 4.25% in 24 hours. That drop signals traders are pulling capital off the table.

Total liquidations over the same period reached $1.86 million, mostly from forced long position closures. The long-to-short ratio has fallen to 0.8619, meaning more traders are now betting on further declines.

The funding rate sits at -0.0138%, below the -0.010% threshold that usually signals unsustainable selling pressure.

Technical Picture

ADA is trading below both its 50-period EMA at $0.2773 and its 200-period EMA at $0.3013. The price broke below a short-term support trendline connecting the February 11 and 19 lows.

The next key level to watch is the 50% Fibonacci retracement at $0.2593. A close below that opens the door to $0.2496, the 38.2% level.

The RSI is sitting at 30 on the daily chart, testing oversold territory. The MACD is falling below zero with widening negative histograms.

If ADA reclaims $0.2695, it could target the EMA levels above.

Cardano’s MVRV Ratio has also dropped sharply, putting most holders in a loss position. Historically, when the 30-day MVRV falls below -20%, it has often appeared near market cycle lows.

Grayscale Increases ADA Exposure

While retail investors are selling, Grayscale has raised ADA’s weight in its Smart Contract Fund to 20.34%. That’s up from roughly 18.5% in January 2026.

ADA now ranks third in the fund, behind Solana and Ethereum. The increase follows the fund’s rebalancing rules, which require buying more of an asset as its allocation target rises.

This is the third consecutive increase in ADA’s weighting in the fund.

On the development side, the Midnight privacy chain is expected to launch by end of March. It offers selective privacy for regulated use and has backing from Google and Telegram.

The next 45 days are expected to bring the biggest technical upgrades to Cardano since the Alonzo era.

ADA is currently trading around $0.27, down more than 22% over the past month.

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