Key Moments
- Cardano (ADA) traded below $0.202 on Monday after three consecutive weeks of declines exceeding 20% since early October.
- Derivatives indicators, including a CoinGlass long-to-short ratio of 0.70 and a funding rate of -0.0032%, signaled a prevailing bearish stance among traders.
- ADA remained below its 50-day, 100-day, and 200-day EMAs, with the RSI at 33 and the MACD in negative territory, underscoring downside risk.
Derivatives Indicate Bearish Positioning
Cardano (ADA) extended its downward move on Monday, changing hands below $0.202 after three straight weeks during which losses exceeded 20% from early October. The ongoing slide has been accompanied by increasing selling pressure, with derivatives, on-chain readings, and price action all pointing toward mounting downside risk.
In the derivatives market, positioning leaned clearly to the bearish side. Data from CoinGlass showed ADA’s long-to-short ratio at 0.70 on Monday, approaching its lowest reading in over a month. A ratio below 1 reflects a larger share of short positions compared with longs, indicating that traders are positioning for additional price weakness.
At the same time, funding dynamics shifted in favor of bearish bets. Cardano’s funding rate turned negative on Monday, registering -0.0032%. A negative funding rate implies that short positions are paying longs to maintain their exposure, reinforcing the view that market participants expect further declines.
| Metric | Latest Reading | Implication |
|---|---|---|
| ADA price (Monday) | $0.201 – below $0.202 intraday | Extends multi-week selloff |
| CoinGlass long-to-short ratio | 0.70 | Bearish bias, shorts dominant |
| Funding rate | -0.0032% | Shorts paying longs, bearish sentiment |
On-chain Signals Reflect Caution
On-chain metrics aligned with the cautious tone seen in derivatives. CryptoQuant’s summary data indicated that ADA futures markets were characterized by large whale orders accompanied by overheating conditions. In parallel, both spot and futures activity reflected sell-side dominance.
Taken together, these elements pointed to a risk-averse stance among Cardano traders, with a prevailing bearish and cautious sentiment bias rather than signs of accumulation or aggressive dip-buying.
Technical Picture: Downtrend Intact, Limited Nearby Support
From a technical perspective, Cardano’s price action remained under pressure. ADA traded at $0.201 on Monday, sustaining a short-term bearish bias while staying below the 50-day, 100-day, and 200-day Exponential Moving Averages, which were clustered in a band roughly between $0.218 and $0.237.
The market recently failed to sustain a breakout above an upward trendline near $0.213, and that level now acts as immediate resistance. Momentum readings reinforced the negative tone: the Relative Strength Index stood at 33, hovering just above traditional oversold levels. This configuration suggested persistent downside pressure, while still allowing room for brief corrective rebounds.
The Moving Average Convergence Divergence indicator also remained aligned with the bearish narrative. The MACD line stayed below the signal line, maintaining a flat negative profile that indicated rallies were likely to be contained by the overhead EMA cluster rather than develop into a sustained trend reversal.
Key Levels: Resistance Overhead, Deep Support Below
On the upside, several resistance zones are stacked closely above current prices:
- Immediate resistance at the former trendline break around $0.213.
- The 100-day EMA at $0.218 as the next technical barrier.
- The 50-day EMA at $0.224, adding to the resistance band.
Beyond these levels, additional horizontal resistance emerges at $0.236 and $0.245. The 200-day EMA at $0.237 reinforces this supply area, forming a broad overhead congestion zone before a more distant resistance marker near $0.299.
On the downside, structurally significant support sits much lower, near the previous downward trendline break around $0.081. With ADA trading well above that level yet below major moving averages, the price currently occupies what can be described as “open air” between spot levels and this deeper technical floor, leaving it vulnerable in the absence of clearly defined intermediate support.
The technical analysis of this story was written with the help of an AI tool. Know more.
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