Key Points
- ADA has fallen by 4% in the past 24 hours and is now trading below $0.37.
- The bearish trend could push ADA below the psychological level of $0.30.
Cardano’s On-Chain Data Signals Further Decline
Cardano’s ADA has declined by 4% over the past 24 hours, marking one of the worst performances among the top ten cryptocurrencies by market capitalization. This downturn coincides with poor on-chain data.
According to Santiment’s social dominance indicator for Cardano, the current outlook for the cryptocurrency remains bearish. This index measures the share of discussions related to ADA across cryptocurrency media.
This metric has consistently decreased since mid-November, hitting an annual low of 0.032% on Thursday. This drop indicates a waning market interest and a weakening sentiment among Cardano investors.
As more traders transfer their coins from wallets to exchanges, ADA is experiencing selling pressure as investors reduce their market exposure.
From a derivatives perspective, data also supports a bearish outlook for ADA. Coinglass’s weighted funding rate indicates that many traders are betting on a price decline as short-term pessimism grows.
The weighted funding rate turned negative on Thursday, dropping to -0.0019%, suggesting that shorts are financing long positions. If this metric shifts negatively, ADA typically experiences significant selling pressure.
ADA Risks Testing $0.30 Again Amid Bearish Control
The 4-hour ADA/USD chart is showing bearish and ineffective trends, as Cardano has underperformed in recent days. The coin was rejected by the upper trend line of a descending wedge pattern on December 9 and has lost 22% of its value since then.
As of publication, ADA is trading at $0.36 and may decrease in the short term. If this downtrend continues, bears could push the price toward the October 10 low of $0.27.
The relative strength index (RSI) on the 4-hour chart reads 31, nearing oversold territory, suggesting strong bearish momentum. Additionally, the moving average convergence divergence (MACD) indicator showed a bearish crossover on Monday, reinforcing negative prospects.
If buyers regain momentum, ADA could rebound towards the 50-day moving average at $0.47 in the coming days.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
