Cardano Price Forecast: ADA recovery threatened by weak momentum

• $0.222 remains above Cardano’s price on Thursday. The previous day, ADA failed to close above the 50-day EMA near $0.228.
• Deteriorating derivatives indicators remain a constraint on ADA’s recovery.
• Momentum is weakening in the technical picture; a close beneath support at the 100-day EMA would signal the possibility of a deeper correction.

$0.222 remains above Cardano’s (ADA) trading price on Thursday. Gains above the 50-day Exponential Moving Average (EMA), near $0.228, proved unsustainable the previous day. Deteriorating derivatives indicators and weaker bullish momentum are weighing on sentiment. A breach of the 100-day EMA could trigger further losses for ADA.

Cardano Recovery Constrained by Weaker Derivatives Indicators

At 0.79 on Thursday, CoinGlass’ ADA long-to-short ratio is approaching its lowest reading in over a month. The derivatives data points to caution towards Cardano. Readings below one reflect bearish sentiment, with traders positioning for asset prices to decline.

After turning negative on Wednesday, Cardano’s funding rate stood at -0.0025% on Thursday. Short positions are therefore paying long positions, a signal of a bearish outlook.

Cardano On-Chain Indicators Point to Bearish Sentiment

Large whale orders and heating market conditions feature in ADA futures, according to CryptoQuant’s summary data, which points to a bearish outlook for Cardano. Selling also dominates both spot and futures markets. Together, these signals indicate a cautious, bearish bias among Cardano traders.

Cardano Technical Outlook: Momentum Signals Lose Strength

At $0.221 on Thursday, Cardano remains beneath its 50-day and 200-day Exponential Moving Averages (EMAs), leaving the near-term outlook skewed towards further declines. ADA sits just above the 100-day EMA around $0.220. Meanwhile, the breach of rising trendline support near $0.210 suggests the broader correction remains under way.

The Relative Strength Index (RSI) remains in the low-40s, while the Moving Average Convergence Divergence (MACD) is still below zero. These momentum readings support a cautious view: downward pressure is easing, but has yet to reverse.

Any advance first faces the 50-day EMA near $0.230. Further resistance lies at the horizontal level around $0.236 and the 200-day EMA near $0.240. Stronger barriers follow towards $0.250 and then $0.300.

Immediate downside support comes from the 100-day EMA around $0.220, followed by the former rising trendline’s break area near $0.210. A sustained decline through that zone would bring deeper support from the former trendline into focus, closer to $0.170.

(The technical analysis of this story was written with the help of an AI tool. Know more.)