Cardano (ADA) Price Drops After Resistance Rejection
Cardano (ADA) price fell to around $0.715 on Tuesday. It faced strong resistance and could not move higher. Traders show bearish sentiment with more short bets. Technical indicators suggest ADA may see a deeper correction soon.
On-Chain and Derivatives Data Show Bearish Signals
CryptoQuant’s Spot Taker CVD for Cardano is negative and has been falling since early October. This metric tracks the difference between buy and sell volumes over three months. A negative value means sellers dominate the market.
On the derivatives side, CoinGlass reports ADA’s long-to-short ratio at 0.81, the lowest in a month. A ratio below one means more traders expect the price to drop.
Cardano Price Outlook: Bears Remain in Control
Cardano broke below its rising trendline last Friday and dropped over 22%. It then recovered 15% on Sunday and Monday, testing the $0.734 resistance level. On Tuesday, ADA faced rejection at $0.734 and moved slightly lower.
If the price keeps falling, the next support is at $0.646. The daily Relative Strength Index (RSI) is 40, showing bears control momentum.
However, if ADA closes above $0.734 on the daily chart, it could rise toward the 200-day Exponential Moving Average (EMA) at $0.771.
