ADA falls under $0.220 support, facing potential deeper losses

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 as buyers were unable to maintain the previous day’s bounce above the 50-day Exponential Moving Average.

This rejection leaves ADA trapped beneath both the 50-day and 200-day EMAs, keeping the near-term outlook bearish. Price currently hovers just above the 100-day EMA near $0.220, placing immediate support close by.

Subdued momentum and weak derivatives positioning indicate that buyers have not yet gathered enough strength to reverse the corrective trend.

Data from CoinGlass showed that Cardano’s long-to-short ratio sat at 0.96 on Thursday, nearing its lowest point in over a month.

This metric points to a higher proportion of short positions among tracked accounts, highlighting caution regarding ADA’s potential to recover.

Funding rates further highlighted this trend, turning negative on Wednesday and registering at -0.0025% on Thursday, meaning holders of short positions were paying those holding longs.

Combined, these metrics signal a bearish bias in the derivatives market. While they do not guarantee further losses, they lack any clear sign of renewed bullish confidence.

Summary metrics from CryptoQuant similarly pointed to widespread selling pressure across Cardano markets, noting large whale orders alongside a hot futures market and sell-side dominance in both spot and futures sectors.

While large orders alone do not dictate market direction, their occurrence alongside heightened selling activity compounds the cautious atmosphere as ADA struggles below overhead resistance.

A more robust recovery would demand that buyers absorb this supply and push prices past nearby technical hurdles.

ADA drops below $0.220 as momentum remains weak

Daily momentum indicators for Cardano continue to call for caution, with the Relative Strength Index lingering in the low-40s, safely under the neutral 50 level.

At the same time, the Moving Average Convergence Divergence stays negative, pointing to a potential easing of bearish pressure rather than a confirmed trend reversal.

The primary support level to monitor is the 100-day EMA around $0.220. If prices break decisively below this mark, the $0.210 zone comes into focus.

Should selling push past $0.210, chart structures indicate a stronger support band down near $0.170, though this downside path relies on the failure of nearer support levels.

Looking upward, the 50-day EMA situated between 0.228 and 0.230 acts as the initial barrier to recovery. A sustained breakout above that zone would alleviate immediate downward pressure and draw focus toward horizontal resistance near $0.236, followed by the 200-day EMA around $0.240.

Additional resistance is found near $0.250, with $0.300 serving as a more distant target if a broader market recovery unfolds.

At present, ADA’s capability to defend the $0.220 mark remains critical for its near-term direction, as weak momentum and bearish derivatives positioning continue to stifle recovery efforts.