Key Takeaways
- ADA has fallen 4% over the past 24 hours and is currently trading below $0.37.
- The bearish trend could push ADA below the psychological $0.30 level.
On-chain Cardano shows continued bearish movement
Cardano’s ADA dropped 4% in the last 24 hours, making it one of the worst performers among the top 10 cryptocurrencies by market capitalization. The downward trend is supported by weak on-chain metrics.
According to Santiment’s social dominance metric for Cardano, the current outlook remains bearish. This index measures the share of crypto media discussions that mention ADA.
The metric has steadily declined since mid-November, reaching an annual low of 0.032% on Thursday. This decrease points to waning market interest and softer sentiment among Cardano investors.
As more traders move coins from wallets to exchanges, ADA faces additional selling pressure while investors reduce their market exposure.
Derivatives data also support the bearish outlook for ADA. Coinglass figures for the OI-weighted funding rate indicate that fewer traders are betting on price gains as more market participants expect prices to fall soon.
The OI-weighted funding rate turned negative on Thursday, slipping by 0.0019%, which means short positions are paying longs. When this indicator turns negative, ADA typically encounters stronger selling pressure.
ADA could re-test $0.30 as bears remain in control
The 4-hour ADA/USD chart is bearish and losing momentum, with Cardano underperforming in recent days. The token failed at the upper trendline of a descending wedge pattern on December 9 and has since lost roughly 22% of its value.
At the time of writing, ADA is trading around $0.36 and may decline further in the near term. If the downtrend continues, bears could drive the price toward the October 10 low near $0.27.
The 4-hour Relative Strength Index (RSI) reads 31, approaching oversold territory and signaling strong bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) produced a bearish crossover on Monday, reinforcing the negative outlook.
If bulls can regain momentum, ADA could climb back toward the 50-period EMA near $0.47 over the coming days.