Cardano (ADA) continues to extend its corrective phase, trading below the $0.29 level at the time of writing on Thursday. Selling pressure has become increasingly evident, reflected by the formation of two consecutive bearish daily candles over the past two sessions. This price behavior highlights a weakening market structure as buyers struggle to regain control.
Beyond spot price action, developments in the derivatives market further reinforce the bearish outlook. Short positioning in ADA has increased, while overall market participation is fading. From a technical perspective, short-term sentiment remains firmly negative, with Cardano drifting closer to price levels not seen since October 21, 2023, raising concerns about the sustainability of current support zones.
Cardano Derivatives Data Signals Growing Bearish Bias
According to derivatives data, Cardano futures open interest (OI) on Binance dropped to $90.21 million on Thursday, marking its lowest level since early November 2024. This decline follows a steady downtrend that began in mid-January, suggesting that capital is gradually exiting ADA-related derivatives markets.
A falling OI typically indicates that traders are closing positions rather than opening new ones, signaling reduced conviction and declining risk appetite. In the current context, this trend aligns with persistent downside pressure and reinforces expectations of further weakness in ADA’s price action.
Additional data from CoinGlass shows that ADA’s long/short ratio stood at 0.95 on Thursday. A ratio below 1 implies that short positions outnumber long positions, highlighting a dominant bearish bias among derivatives traders. This imbalance reflects growing expectations that Cardano may continue to face downside risks in the near term.
Market Outlook
Overall, the combination of weak spot price structure, declining derivatives participation, and a skew toward short positioning paints a cautious picture for Cardano. Unless market sentiment improves or buyers step in decisively, ADA may remain vulnerable to further downside as the broader correction unfolds.
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions. The author assumes no responsibility for any investment outcomes.
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