Key takeaways
Cardano trades below $0.22 after failing to sustain a move above its 50-day EMA.
ADA’s long-to-short ratio stands at 0.79, approaching its lowest reading in more than a month.
Negative funding rates indicate increased demand for bearish derivatives exposure.
Cardano recovery stalls below key moving average
Cardano remained under pressure on Thursday, trading below $0.220 after buyers failed to sustain the previous day’s recovery above the 50-day Exponential Moving Average.
The rejection leaves ADA below its 50-day and 200-day EMAs, maintaining a bearish near-term outlook. Price is now hovering just above the 100-day EMA around $0.220, placing immediate support within reach.
Weak derivatives positioning and subdued momentum suggest buyers have yet to establish enough strength to reverse the corrective trend.
CoinGlass data showed Cardano’s long-to-short ratio at 0.96 on Thursday, nearing its lowest level in more than a month.
The reading indicates a greater share of short positioning among the accounts measured, reflecting caution about ADA’s recovery prospects.
Funding rates reinforced that picture. Cardano’s rate turned negative on Wednesday and stood at -0.0025% on Thursday, meaning short-position holders were paying longs.
Together, the readings point to a bearish tilt in derivatives positioning. They do not guarantee further losses, but they provide little confirmation of renewed bullish conviction.
CryptoQuant’s summary data also indicated selling pressure across Cardano markets. The platform identified large whale orders and heating conditions in futures trading, alongside sell-side dominance in both spot and futures markets.
Large orders alone do not establish direction. However, their presence alongside stronger selling activity adds to the cautious backdrop as ADA struggles beneath overhead resistance.
A stronger recovery would require buyers to absorb that supply and sustain price gains beyond nearby technical barriers.
ADA drops below $0.220 as momentum remains weak
Cardano’s daily momentum indicators continue to favor caution. The Relative Strength Index remains in the low-40s, below the neutral 50 threshold.
Meanwhile, the Moving Average Convergence Divergence remains negative, suggesting that bearish pressure may be easing without a confirmed reversal.
The first support to watch is the 100-day EMA near $0.220. A sustained break below that level would bring the $0.210 area into focus.
If selling extends through $0.210, the chart points to a deeper support region around $0.170. That remains a downside scenario dependent on a breakdown of the nearer support levels.
On the upside, the 50-day EMA around 0.228–0.230 forms the first recovery barrier. A sustained move above that zone would ease immediate pressure and shift attention toward horizontal resistance near $0.236, followed by the 200-day EMA around $0.240.
Further resistance lies near $0.250, with $0.300 a more distant level should a broader recovery develop.
For now, ADA’s ability to hold $0.220 remains central to its short-term outlook as bearish derivatives positioning and weak momentum limit recovery attempts.
