- Cardano remained under pressure as declining futures activity and weaker retail demand limited its recent recovery.
- ADA must break above key resistance near $0.1782 to improve its short-term outlook.
Cardano (ADA) remains under pressure after its recent recovery attempt lost strength below a key technical resistance level. While ADA posted modest gains earlier this week, declining activity in the futures market suggests retail traders are becoming less active, limiting the chances of a stronger breakout.
Market data also shows sellers continue to hold the upper hand as ADA trades below important moving averages.
Cardano Futures Activity Declines
Recent derivatives data points to weaker market participation. According to CoinGlass, Cardano futures Open Interest dropped 7% over the past 24 hours to $402.74 million, while trading volume fell 41% to $352.30 million.
Lower Open Interest and trading volume often indicate that fewer traders are opening new positions. This usually reflects reduced retail interest and lower market conviction.
At the same time, long liquidations reached $241,350, exceeding short liquidations of $175,480. This imbalance suggests bullish traders have faced heavier losses, giving sellers greater control over recent price action.
Funding rates remain positive at 0.0044%, but they have declined from 0.0088% recorded a day earlier. Although traders are still slightly bullish, the drop indicates that confidence is gradually fading.
Technical Indicators Still Favor Caution
Cardano continues trading below its 50-day EMA near $0.1770, which has rejected two consecutive recovery attempts. The price also remains well below the 200-day EMA, reinforcing the broader bearish trend.
Another obstacle sits near the descending resistance trendline around $0.1782, creating a strong resistance zone that buyers have yet to overcome.
Momentum indicators present a mixed picture. The MACD remains slightly positive, showing that buying pressure has not disappeared completely. Meanwhile, the Relative Strength Index (RSI) is close to 52, suggesting neutral market conditions without a clear directional advantage.
Key ADA Price Levels to Watch
The first resistance level remains the 50-day EMA at $0.1771, followed closely by the descending trendline near $0.1782. A decisive close above both levels could improve the short-term outlook and allow ADA to target the next major resistance around $0.2205.
On the downside, the first support stands near $0.1629, where previous higher lows have formed. If this level fails, Cardano could decline toward the stronger support zone around $0.1486, an area where buyers previously stepped in.
Outlook
Cardano’s recent rebound has struggled to attract enough retail participation to support a sustained recovery. Falling futures activity, declining trading volume, and continued selling pressure suggest buyers remain cautious.
Unless ADA breaks above the resistance cluster around $0.1770–$0.1782, the broader trend is likely to remain under pressure. Traders will continue watching whether support levels hold or if renewed buying interest returns to strengthen the recovery.
ALSO READ: Chainlink Partners With United Stables to Secure $1B U Stablecoin
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
