- Cardano trades near $0.64 as open interest drops to a yearly low and short positions increase, signaling bearish sentiment.
- Technical indicators suggest ADA could fall below $0.60 unless strong recovery support emerges.
Cardano (ADA) traded near $0.64 on Monday after sliding almost 7% last week. The drop coincides with a sharp decline in derivatives market activity, pointing to growing investor caution. According to Coinglass data, Cardano’s futures Open Interest (OI) fell to $112.82 million — the lowest level since November 2024. The drop signals fading trader participation and a rising probability of further downside for ADA.
Adding to the bearish tone, Cardano’s long-to-short ratio has dropped to 0.85, marking its lowest reading in a month. A ratio below 1.0 typically suggests that short positions outweigh long ones, revealing that more traders expect ADA’s price to fall. This pessimistic sentiment reinforces the potential for extended losses in the coming days.
Technical Indicators Point Toward Further Decline
Cardano’s recent price rejection from the 61.8% Fibonacci retracement level at $0.73 triggered a notable 15% correction last week, with ADA closing below $0.64. Despite a minor recovery over the weekend, technical indicators suggest the bears remain firmly in control.
The Relative Strength Index (RSI) currently sits at 37, below the neutral 50 mark, signaling weakening buying pressure. Additionally, the Moving Average Convergence Divergence (MACD) continues to display a bearish crossover — a sign that downward movement may persist. If ADA maintains this trajectory, it could test the next key support level at $0.56.
Potential Recovery Scenarios
While the broader trend remains negative, a short-term rebound cannot be ruled out. Should ADA regain strength above $0.65, the token may retest the $0.73 resistance zone, corresponding to the 61.8% Fibonacci level. However, sustained recovery would require renewed trading interest and stronger market sentiment — factors currently missing from the derivatives data.
For now, Cardano faces increased risk of deeper correction as bearish traders dominate the market. Unless a reversal pattern forms soon, ADA could continue its descent toward sub-$0.60 levels.
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