Key takeaways
- ADA has lost 7% of its value over the past seven days.
- The coin may decline further as market sentiment remains bearish.
ADA down 35% in November
ADA, the native token of the Cardano blockchain, rose less than 1% on Tuesday after recovering from a 6% drop on Monday. The token’s weak performance follows a decline in trader interest across Cardano derivatives markets.
Data from CoinGlass shows ADA futures open interest (OI) fell 6.82% over the past 24 hours to $693 million. This decline signals that investors are taking a more risk-averse stance toward the market.
Additionally, the weighted OI funding rate stood at -0.0057%, reflecting growing confidence among sellers. The long-to-short ratio sits at 0.8765, with short positions making up 53.29% of all derivative contracts within the last 24 hours.
These figures indicate that short-side activity dominates Cardano derivatives, with traders positioning for lower ADA prices in the near term.
Could ADA close below its 2025 low?
The ADA/USD daily chart is bearish and shows inefficiency after Cardano’s underperformance in recent weeks. The coin fell below $0.40 following a 35% drop in November and faces the potential for further declines in the coming days and weeks.
Technical indicators are bearish: the daily RSI sits near 28, signaling oversold conditions, while the MACD remains in negative territory, indicating continued selling pressure. If the RSI remains below 30, Cardano risks a deeper corrective move.
A daily close below the November 21 low at $0.3876 could trigger further losses, potentially retesting the September 16, 2024 low at $0.3264. On the upside, if buyers regain control and ADA can sustain a move above $0.3876, the token may retest the $0.40 resistance level in the near term.