- Cardano (ADA) trades around $0.650 amid growing bearish pressure, with negative funding rates and falling network activity signaling weak market sentiment.
- Technical indicators like the RSI and MACD also point to a possible further decline toward $0.615.
Cardano (ADA) is under pressure, with its price hovering near $0.650 on Tuesday after shedding nearly 6% in the past two days. A convergence of technical and on-chain data points to a deepening bearish sentiment, raising concerns of a potential extended correction in the coming days.
The bearish outlook is underpinned by Coinglass’s Open Interest (OI)-Weighted Funding Rate, which currently stands at -0.0017%. This negative reading indicates that short traders are paying long traders—typically a sign that bearish sentiment dominates the futures market. When shorts outweigh longs, it reflects trader expectations of further downside.
Also read: Dogecoin Eyes $4.42 as Bitcoin Aims for $2.4M—Here’s What to Expect
Adding to the pessimism is Cardano’s declining network activity. According to Santiment, Daily Active Addresses for ADA have been in a downtrend since early March and now sit at 21,600. This fall in blockchain engagement suggests diminishing user demand—an unwelcome sign for any crypto asset aiming for long-term growth.
Technically, ADA also paints a grim picture. After failing to break past the weekly resistance level of $0.746 on April 24, the token has slipped 8.3% over the past 12 days. Momentum indicators reinforce the bearish bias: the Relative Strength Index (RSI) is at 46—below the neutral 50 mark—and the MACD just flashed a bearish crossover on Monday, signaling potential for further downside.
Should bearish momentum persist, ADA may retest the April 22 low of $0.615 as its next key support level. However, bulls shouldn’t lose hope entirely. A decisive close above $0.746 could flip the narrative, potentially propelling ADA toward the next resistance near $0.810.
For now, though, the path of least resistance appears downward as market sentiment, network activity, and technical signals align in bearish territory. Traders and investors may want to brace for more turbulence unless a strong reversal materializes.