Cardano risks further losses as ADA drops below the $0.220 support

Key takeaways

• Cardano is changing hands below $0.22 after failing to sustain a move above its 50-day EMA.
• ADA’s long-to-short ratio sits at 0.79, approaching its lowest level in over a month.
• Negative funding rates point to growing demand for short derivatives exposure.

Cardano recovery halts below critical moving average

Cardano remained under pressure on Thursday, trading under $0.220 as buyers failed to hold the prior day’s advance above the 50-day Exponential Moving Average (EMA).

The rejection keeps ADA positioned beneath its 50-day and 200-day EMAs, preserving a bearish short-term outlook. The price is currently hovering just above the 100-day EMA near $0.220, leaving immediate support within close reach.

Sluggish momentum and weak derivatives positioning indicate that buyers have yet to gather enough strength to reverse the broader correction.

CoinGlass metrics showed Cardano’s long-to-short ratio at 0.96 on Thursday, nearing a one-month low.

This reading reflects a larger share of short positions among monitored accounts, highlighting ongoing skepticism regarding ADA’s recovery potential.

Derivatives funding rates reinforced this cautious backdrop. Cardano’s rate flipped negative on Wednesday and stood at -0.0025% on Thursday, indicating that short traders were paying long holders.

Together, these indicators point to a bearish bias in the derivatives market. While they do not guarantee additional price drops, they offer little signal of renewed buying conviction.

Summary data from CryptoQuant also highlighted persistent sell-side pressure across Cardano markets, identifying substantial whale orders, elevated activity in futures trading, and dominant selling in both spot and derivatives venues.

While large orders alone do not dictate price direction, their presence alongside persistent selling adds to a cautious environment while ADA struggles under overhead resistance.

A convincing rebound would require buyers to absorb this supply and keep prices above nearby technical hurdles.

ADA slides below $0.220 as momentum stays weak

Daily momentum indicators for Cardano continue to favor caution. The Relative Strength Index (RSI) remains stuck in the low-40s, below the neutral 50 mark.

At the same time, the Moving Average Convergence Divergence (MACD) remains negative, suggesting bearish momentum may be cooling without establishing a confirmed bullish reversal.

The primary support to monitor is the 100-day EMA near $0.220. A decisive breakdown below this area would bring the $0.210 level into focus.

If selling accelerates past $0.210, technical charts point toward a lower support zone around $0.170, though that outcome depends on nearer support levels giving way.

To the upside, the 50-day EMA around 0.228–0.230 serves as the initial barrier to a recovery. A sustained push past that zone would reduce immediate selling pressure and direct attention toward horizontal resistance near $0.236, followed by the 200-day EMA around $0.240.

Higher resistance rests near $0.250, with $0.300 serving as a more distant target should a larger market recovery take shape.

For now, ADA’s ability to defend $0.220 remains critical to its near-term outlook as subdued momentum and bearish derivatives sentiment limit rebound attempts.