Cardano Struggles as Bearish Derivatives Sentiment Deepens

Key Moments

Derivatives Positioning Signals Ongoing Downside Risk

Cardano (ADA) continues to face selling pressure, changing hands at $0.165 on Monday after posting modest declines during the prior week. Derivatives and momentum indicators suggest that attempts to recover remain constrained, keeping attention on the possibility of further losses.

Data on ADA derivatives points to a cautious and largely bearish stance among traders. CoinGlass’ long-to-short ratio for Cardano is at 0.82 on Monday, hovering close to its lowest reading in over a month. A ratio below 1.0 indicates that short positions outweigh longs, reflecting expectations that prices could fall.

Funding metrics are aligned with that view. ADA perpetual funding rates turned negative on Sunday and are recorded at -0.008 on Monday, showing that traders holding short positions are paying those on the long side. This structure typically highlights a negative bias toward the asset’s near-term price direction.

Spot Price Sits Below Major Moving Averages

On the spot market, ADA trades at $0.165 and maintains a bearish short-term profile as it remains firmly below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs). These EMAs are clustered in a band from roughly $0.180 to $0.270, forming an overhanging technical barrier for any sustained rebound.

The Relative Strength Index (RSI) is positioned just under the neutral 50 threshold at around 47, illustrating muted momentum following a recent bounce from lower levels. At the same time, the Moving Average Convergence Divergence (MACD) indicator is edging closer to its signal line while holding only a slightly positive value, pointing to tentative recovery efforts within a broader downtrend.

Key Technical Levels: Resistance and Support

Cardano’s near-term trading map is shaped by a series of Fibonacci retracement levels and moving averages that define overhead resistance and downside support.

On the upside, the first notable hurdle sits at the 23.6% Fibonacci retracement at $0.173, closely aligned with the 50-day EMA around $0.175. A decisive move above this area would expose the 38.2% Fibonacci retracement at $0.195 and the 100-day EMA near $0.200. Beyond that, the 50% retracement at $0.213 and the 61.8% Fibonacci marker at $0.231 come into play, ahead of a thick resistance zone spanning approximately $0.236–$0.245.

On the downside, immediate technical support appears at the horizontal level of $0.150. If selling pressure intensifies, the next area of interest is the Fibonacci anchor low around $0.137, where market participants would typically be expected to show greater buying interest if the current decline continues.