Cardano risks sliding to $0.156 as losses extend to sixth week

Key takeaways

• Cardano (ADA) is changing hands near $0.171 on Friday, pushing its weekly decline toward 4%. 
• Since early October, ADA has dropped more than 30%, pointing to persistent sell pressure and falling investor confidence.
• Support for ADA sits at $0.156, while resistance is found at $0.183 and the $0.203–$0.229 EMA zone.

Cardano's downward move stretched into Friday, with the token trading around $0.171 as weakening derivatives activity and bearish on-chain metrics fueled concerns over additional declines.

The digital asset has shed roughly 4% this week and is on track for a sixth straight weekly drop, deepening a correction that has wiped out more than 30% of its value since early October.

Derivatives traders are growing more defensive, with Cardano's long-to-short ratio approaching its lowest point in over a month and funding rates moving into negative territory.

Cardano derivatives show bearish tilt as long-to-short ratio drops

Cardano's derivatives market continues to reflect waning investor confidence as traders brace for further downside.

Data from CoinGlass shows ADA's long-to-short ratio at 0.86, nearing its lowest level in more than a month.

A reading below 1 means short positions exceed long positions under the tracked metric, indicating that bearish bets have gained prominence.

Funding rates offer another sign of flagging sentiment. Cardano's funding rate turned negative on Thursday and was at -0.0015% on Friday.

The mix of bearish positioning and negative funding suggests traders remain unwilling to bet on a sustained price rebound.

Cardano's on-chain and trading signals also point to unfavorable market conditions.

According to CryptoQuant's summary figures, both ADA spot and futures markets are seeing large whale orders along with elevated trading volumes.

The data also points to sell-side dominance in both markets. CryptoQuant's readings indicate that major players remain active while aggressive selling continues to outpace buying.

Cardano price outlook: ADA stays under key moving averages

Cardano's technical picture remains bearish as the cryptocurrency continues to trade below its major daily Exponential Moving Averages (EMAs).

As of Friday, ADA is trading near $0.171, well below its 50-day EMA of $0.203.

The 100-day EMA is around $0.208, while the 200-day EMA sits near $0.229.

Being below all three moving averages suggests sellers are in control of the short-, medium- and long-term price trends.

Momentum gauges show little sign of an imminent bullish turn. The daily Relative Strength Index (RSI) has dropped to roughly 29, putting Cardano in oversold territory.

At the same time, the Moving Average Convergence Divergence (MACD) remains in negative territory, with its histogram showing limited momentum.

That indicates bearish pressure continues even if the pace of selling may be stabilising.

Overall, these indicators suggest Cardano's broader downtrend remains intact despite the chance of a short-term bounce.

Cardano's next key downside support sits at $0.156. That horizontal level could draw buying interest as traders assess whether the token's recent correction has become excessive.

A successful hold at $0.156 could let ADA consolidate and possibly attempt a temporary recovery. However, a clear break below that support would worsen the technical outlook.

Despite the bearish technical setup, Cardano could attempt a rebound if buyers manage to defend the $0.156 support level.

The first key resistance is at $0.183. A sustained break above that level would suggest short-term buying momentum is picking up.

Still, ADA would face a significant resistance cluster between $0.203 and $0.229, where its major daily EMAs are concentrated.

The 50-day EMA at $0.203 is the first major dynamic barrier. Past that, the 100-day EMA near $0.208 and the 200-day EMA around $0.229 could cap further gains.

A recovery above those moving averages would offer stronger evidence that Cardano's bearish structure is beginning to improve. Additional resistance levels are at $0.236, $0.245 and $0.296.