Cardano faces potential drop to $0.32 as bearish trend deepens.

Key Points

• The ADA cryptocurrency has seen a 7% decline in value over the past week.
• Continued bearish sentiment in the market may lead to further losses for the coin.

ADA Loses 35% in November

ADA, the native token of the Cardano blockchain, recorded a modest gain of less than 1% on Tuesday, recovering from a 6% drop on Monday. This decline came as interest among traders in Cardano’s derivatives market waned.

According to CoinGlass, open interest (OI) in ADA futures contracts has dropped by 6.82% in the last 24 hours, totaling $693 million. This decline indicates a risk-averse approach from investors regarding market conditions.

Furthermore, the weighted funding rate in open interest is at -0.0057%, highlighting increased bearish sentiment among traders. Presently, the long-short ratio stands at 0.8765, with short positions accounting for 53.29% of all derivative contracts over the past day.

This data suggests a prevailing bearish sentiment amongst Cardano derivatives traders, who are anticipating a further decline in ADA’s price in the near term.

Will ADA Close Below 2025 Low?

The daily ADA/USD chart displays a bearish trend, with Cardano underperforming in recent weeks. The token has fallen below the $0.40 mark, losing 35% of its value in November and may continue to decline in the following days and weeks.

Technical indicators remain bearish, with the daily RSI now at 28, indicating oversold conditions. MACD lines are also in negative territory, signaling significant selling pressure. If the RSI stays below 30, Cardano may face more substantial corrections.

If the daily candle closes below the November 21 low of $0.3876, ADA could incur significant losses and retest the September 16, 2024 low of $0.3264. Conversely, if buyers regain control and ADA remains bullish above $0.3876, it may target the $0.40 resistance level in the short term.