Cardano (ADA) Price Falls Below $0.37 Amid Bearish Signals
Cardano (ADA) price dropped more than 7% this week. On Thursday, it fell below $0.37, reaching a two-month low. Several indicators now show signs of further decline in ADA’s price.
Bearish On-Chain Data and Market Sentiment
- Santiment’s Social Dominance index for ADA has been falling since mid-November. It hit an annual low of 0.032% on Thursday. This shows less discussion and weaker interest in Cardano among traders.
- The Age Consumed index by Santiment suggests more dormant ADA tokens are moving. Historically, such activity signals increased selling pressure and price drops. Recent spikes on December 10 and Monday pointed to a downtrend.
- Coinglass data shows the Open Interest-Weighted Funding Rate for ADA turned negative on Thursday, dropping 0.0019%. This means more traders are betting on a price drop than a rise. Negative funding rates have often led to sharp ADA price declines.
Technical Indicators Highlight Strong Bearish Momentum
Cardano price was rejected at the upper trendline of a falling wedge pattern on December 9. Following this, ADA fell 21.8% by Wednesday.
On Thursday, ADA traded near $0.36. If bearish sentiment continues, the price could fall toward the October 10 low of $0.27.
The Relative Strength Index (RSI) is at 32, close to oversold levels, signaling strong selling momentum. The Moving Average Convergence Divergence (MACD) showed a bearish crossover on Wednesday, confirming the negative trend.
If ADA recovers, it may rise toward the 50-day Exponential Moving Average (EMA) near $0.47.
