Key takeaways
- Cardano (ADA) is trading below $0.168 after being rejected at the 50-day EMA.
- Derivatives data is providing mixed signals, with the ratio of long to short derivatives remaining bullish while funding rates have turned negative.
- Large Cardano whales have collected nearly 120 million ADA since Monday.
Cardano (ADA) extended its losses on Friday, trading below $0.168 after buyers failed to overcome resistance at the 50-day Exponential Moving Average (EMA) earlier in the week.
Although some large investors continue to accumulate ADA, mixed derivatives data and weak technical indicators suggest that the market is still uncertain about the next major move for the cryptocurrency.
Derivatives data reflects divided trader sentiment
The Cardano derivatives market is sending mixed signals. according to Coinglass dataThe long to short ADA ratio was 1.07 on Friday.
A reading above one indicates that more traders are positioning themselves for price gains than declines, reflecting a modest bullish bias among leveraged traders.
However, other derivatives metrics tell a different story. Cardano’s perpetual futures funding ratio flipped into negative territory on Thursday and remained at approximately -0.014 on Friday.
Negative funding rates indicate that short sellers are paying out holders of long positions, which usually indicates increasing bearish sentiment and expectations of further decline.
The contrast between bullish positions and negative financing highlights the growing uncertainty among traders.
On-chain data suggests that large investors have continued to buy despite recent price weakness.
According to Santiment, wallets containing 1 million to 10 million ADA and 10 million to 100 million ADA have accumulated approximately 120 million ADA since Monday.
Meanwhile, wallets containing 100,000 to 1 million ADA showed relatively little activity.
Selective accumulation by major coin holders may indicate confidence in Cardano’s long-term outlook, although buying has not yet been strong enough to trigger a broader shift in market sentiment.
ADA remains below the major moving averages
Technically, Cardano continues to trade within a broader bearish structure.
ADA remains below the 50-day moving average ($0.176), 100-day moving average ($0.202), and 200-day moving average ($0.267)
The inability to recover these levels indicates that sellers are still in control of the trend in the medium term.
Technical momentum indicators indicate that the market lacks a clear direction. The Relative Strength Index (RSI) is hovering near 48, reflecting balanced buying and selling pressures without a strong trend.
Meanwhile, the Moving Average Convergence Divergence (MACD) is still just above the zero line, indicating that although occasional recovery attempts continue, the upward momentum remains relatively weak.
Adding to the technical challenge, the previously broken long-term downtrend line near $0.197 is now an important resistance level.
To strengthen bullish momentum, ADA must first overcome several nearby resistance levels, including $0.176 (50-day EMA) and $0.197 (former long-term trend line resistance).
A sustained move above these barriers should improve Cardano’s short-term outlook.
On the downside, traders are watching:
- $0.150 – immediate horizontal support
- $0.138 – major Fibonacci support
A break below $0.138 could expose ADA to new lows and reinforce the broader downtrend.
Cardano is still facing selling pressure after failing to reclaim the 50-day moving average, while mixed derivatives signals reflect uncertainty among market participants.
For now, ADA’s ability to hold above $0.150 while reclaiming the $0.173-$0.176 resistance zone will likely determine whether the token can build a stronger recovery or extend its recent decline.
