Cardano (ADA) continues its downward trend, slipping below $0.168 after failing to break past the 50-day Exponential Moving Average (EMA) resistance earlier this week. The coin's price momentum shows no clear direction, with key technical indicators signaling hesitation among traders.
Data from the derivatives market presents a mixed picture. The long-to-short ratio on ADA remains slightly bullish at 1.07, suggesting more traders expect upward movement. Yet, this optimism contrasts sharply with the perpetual futures funding rates turning negative around -0.014, a sign that shorts are paying longs and bearish sentiment may be intensifying.
This divergence highlights uncertainty among market participants regarding Cardano’s near-term trajectory. While smaller traders seem divided, larger holders continue to accumulate. Wallets holding between 1 million and 100 million ADA have added roughly 120 million ADA since Monday, according to Santiment data. In contrast, mid-sized holders with 100,000 to 1 million ADA tokens appear mostly inactive. Such selective buying indicates confidence among whales but hasn’t yet shifted the overall market sentiment to bullish.
Technically, ADA remains under pressure, trading beneath major EMAs the 50-day at $0.176, the 100-day at $0.202, and the 200-day at $0.267 showing sellers firmly in control over the medium term. The Relative Strength Index (RSI) hovers near 48, signaling no strong buying or selling edge, while the Moving Average Convergence Divergence (MACD) stays just above zero, pointing to sporadic bullish attempts that lack follow-through.
These ongoing technical struggles and mixed signals from derivatives suggest that Cardano’s next move remains highly uncertain as traders weigh whether the recent accumulation by large investors will bring a shift or if bears will continue dominating. Investors eyeing ADA should stay alert to changes in both on-chain accumulation trends and derivatives funding rates.
This content is for informational purposes and does not constitute financial advice.
