Cardano (ADA) Price Drops Amid Bearish Market Sentiment
Cardano (ADA) fell another 5% on Thursday after losing 3% the day before. It broke below a key resistance trendline. Data from derivatives shows a bearish shift. Open Interest and long positions are both falling.
Still, on-chain data shows a rise in network activity. This could help support demand for ADA over time.
Derivatives Show Bearish Outlook Despite Network Growth
- Cardano futures Open Interest dropped 13% in 24 hours to $725.61 million, per CoinGlass.
- This fall reflects fewer active long and short positions, signaling lower risk appetite.
- The funding rate decreased to 0.0019% from 0.0047%, indicating weaker bullish sentiment.
- Short positions now make up 54.62% of active trades, showing more bearish bets.
On the network side, Santiment reports a nine-month high in transaction volume at 4.11 billion ADA on Tuesday. Daily active addresses reached 34,229, near a four-month high. This shows growing user interest.
Cardano Faces Risk of More Than 10% Price Drop
Cardano’s price pulled back 3% from a resistance trendline connecting the October 27 and November 11 highs. The Supertrend indicator at $0.48 supports this downward move.
The next target could be the December 1 low at $0.3707, nearly 14% below the current price. The Relative Strength Index (RSI) at 44 shows rising selling pressure, with room for further decline before hitting oversold levels.
However, the Moving Average Convergence Divergence (MACD) still shows some bullish momentum. A drop below the signal line would confirm renewed bearish pressure.
For a positive trend reversal, Cardano must break above $0.48. This would trigger a buy signal and could push prices to $0.6069, near the November 11 high.
