Key points
- ADA has lost 7% of its value over the past seven days.
- The coin could incur further losses as the market remains bearish.
ADA down 35% in November
ADA, the native coin of the Cardano blockchain, rose less than 1% on Tuesday after recovering from a 6% drop on Monday. The bearish momentum coincided with waning trader interest in the Cardano derivatives market.
According to CoinGlass, ADA futures open interest (OI) fell 6.82% over the past 24 hours to $693 million. This decline suggests investors are taking a more risk-averse stance in the market.
The OI-weighted funding rate is at -0.0057%, indicating increased conviction among bearish traders. Given current market conditions, the long-to-short ratio stands at 0.8765, with short positions rising to 53.29% of all derivatives contracts in the past 24 hours.
These metrics point to sell-side dominance in Cardano derivatives, with traders positioning for further short-term downside in ADA’s price.
Will ADA close below the 2025 low?
The ADA/USD daily chart looks bearish and inefficent, as Cardano has underperformed in recent weeks. The coin slipped below $0.40 after losing 35% of its value in November and may decline further in the coming days and weeks.
Technical indicators add to the gloomy outlook: the daily RSI sits at 28, signaling an oversold condition, while MACD lines remain in negative territory, reflecting persistent selling pressure. If the RSI stays below 30, Cardano remains vulnerable to deeper corrections.
A daily close below the November 21 low of $0.3876 would open the door to significant losses, potentially retesting the September 16, 2024 low at $0.3264. On the upside, if buyers regain control and ADA holds above $0.3876, the market could attempt to reclaim the near-term resistance at $0.40.