Cardano Price Drops Near Key $0.40 Level
Cardano (ADA) is falling and nearing the $0.40 price mark on Thursday. This decline happens despite the Federal Reserve easing its monetary policy. The Fed cut its benchmark interest rate by 25 basis points to 3.50%-3.75% on Wednesday. However, Fed Chairman Jerome Powell warned of inflation risks and a slow job market. These factors suggest fewer rate cuts in 2026, which has hurt crypto market sentiment.
Until new positive factors emerge, Cardano and other risky assets may see more selling pressure.
Decline in Cardano Derivatives and Retail Interest
Cardano’s derivatives market has not recovered since the big sell-off on October 10. That day saw nearly $118 million in long positions and $22 million in shorts liquidated. The wider crypto market lost around $19 billion in liquidations on the same day.
Retail interest in Cardano derivatives remains weak. Futures Open Interest (OI) was $773 million on Thursday, down from $847 million a day earlier. OI was $1.51 billion on October 10 and reached a high of $1.95 billion on September 14. A rising OI is needed to improve sentiment and attract buyers.
Technical Analysis Shows Bears in Control
Cardano is trading near $0.41 after dropping over 9% from the day’s open at $0.43. The price is below key moving averages on the 4-hour chart:
- 50-period EMA at $0.434
- 100-period EMA at $0.437
- 200-period EMA at $0.47
The 50 EMA is crossing below the 100 EMA, which signals bearish momentum. The MACD indicator is below its signal line with rising negative bars. The RSI is at 37, showing weak but not oversold conditions. If RSI stays under the midpoint, selling pressure may continue.
Resistance is near $0.47, while support lies close to the December low of $0.37. The Average Directional Index (ADX) near 24 indicates moderate downward trend strength.
If Cardano moves back above the 50 and 100 EMAs, it could test the 200 EMA near $0.47. However, failing to do so would keep the price biased to the downside.
