Key takeaways
- Cardano (ADA) faces losses below $0.2800 after Sunday’s 4% recovery was capped by the 100-day EMA.
- Negative funding rates and a shift in futures market sentiment signal a bearish outlook.
Cardano futures market turns bearish as sentiment shifts
ADA is dpwn 2% in the last 24 hours and could record further losses in the near term. Cardano’s futures market sentiment is shifting to a bearish stance amid a pullback in the spot price this week.
According to CoinGlass data, the ADA futures Open Interest (OI) rose by over 4% in 24 hours, reaching $596.40 million, indicating a buildup of positions as traders prepare for a potential sharp move.
However, the negative funding rate of -0.0018% suggests that fewer traders are willing to take long positions on ADA, pointing to a bearish outlook.
Additionally, the long-to-short ratio stands at 0.7212, showing that active short positions significantly outnumber long positions, further reinforcing the bearish sentiment.
Technical outlook: ADA faces resistance at the 100-day EMA
The ADA/USD 4-hour chart remains bearish and efficient. At the time of writing, Cardano is trading around $0.2743, maintaining a capped tone below the 100-day EMA at $0.2870.
While ADA is holding above the 50-day EMA at $0.2603, the technical structure remains cautious, suggesting that the broader bearish trend could continue if support fails to hold.
The Moving Average Convergence Divergence (MACD) is inching closer to the signal line, with the positive histogram bars contracting. Meanwhile, the Relative Strength Index (RSI) has slipped to 59, indicating that bullish momentum is weakening after an overextended move.
If the rally resumes, immediate resistance is seen at the 100-day EMA near $0.2870, with the longer-term 200-day EMA around $0.3696 acting as the next significant barrier.
However, if the bearish trend persists, the 50-day EMA at $0.2603 offers the first notable layer of support.
A daily candle close below this level could signify that the latest rebound is fading and the broader bearish bias is reasserting itself.
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