Key takeaways
- Cardano’s ADA has dropped about 10% over the past 24 hours and is currently trading near $0.415.
- The coin could rebound toward the $0.50 area if the $0.40 support level holds.
By market capitalization, ADA is the weakest among the top ten cryptocurrencies, losing roughly 10% of its value in the last 24 hours. This decline comes amid shifts in Fed policy expectations and falling yields.
On-chain data, however, suggests Cardano may be positioned for a recovery and could move higher in the near term.
Derivatives data weigh on ADA
Data from CoinGlass show Cardano futures open interest (OI) fell to $725.61 million over the past 24 hours. A decline in OI signals fewer active positions—both longs and shorts—which suggests diminished trading interest in the asset at present.
As traders reduced exposure, ADA’s funding rate dropped to 0.0019% from Wednesday’s 0.0047%, reflecting reduced upward pressure from leverage.
Short positions accounted for 54.62% of active positions over the last 24 hours at the time of reporting, indicating a predominantly bearish stance among traders toward ADA’s price action.
Despite the decline in derivatives activity, on-chain metrics collected by Santiment show a surge in transactions, with daily transfer volume reaching a nine-month high of 4.11 billion ADA on Tuesday. Increased on-chain activity can support price appreciation over the short to medium term.
Daily active addresses also hit a four-month high of 34,229, signaling renewed interest in the Cardano network.
Cardano could reclaim $0.50 soon
The ADA/USD four-hour chart displays bullish intention and structure, forming a Market Shift (MSU) pattern on this timeframe. Technical indicators remain biased to the downside for now but could turn bullish if ADA holds the $0.40 support level.
The RSI at 36 shows ADA is still in bearish territory, while MACD lines are in positive territory, hinting at growing upward momentum.
If momentum shifts, ADA could rise toward the $0.50 resistance in the coming hours or days. A decisive breakout could push Cardano toward $0.6069, near the November 11 peak.
Conversely, failure to sustain gains could see ADA retest the December 1 low at $0.3707 in the near term.