Cardano’s ADA price extended its losses, trading below $0.36 on Thursday after a prior correction.
The downturn comes as risk sentiment weakens amid rising geopolitical tensions between the United States and Iran, pressuring risk assets including ADA.
As of Thursday, ADA was trading around $0.35, with technical setups signaling the potential for a further pullback toward the December 31 low near $0.32 if selling continues.
Reuters reported that U.S. President Donald Trump is weighing options against Iran that could include targeted strikes on security forces and leadership to spur protesters.
The deployment of a carrier and supporting warships to the Middle East this week has expanded the possibilities for a broader military action, while Trump has urged Iran to negotiate on nuclear weapons, warning that any future attack would be more severe than past campaigns.
Iran responded with threats to strike back at the United States, Israel, and their supporters, fueling a risk-off mood that has weighed on risk assets such as Cardano.
Derivatives data add to the bearish near-term outlook, with the ADA long-to-short ratio at 0.71 on Thursday—the highest level of short bets in over a month.
A ratio below one indicates traders expect the price to fall, reinforcing the case for additional downside if selling persists.
If the downside presses on, the next key support sits near $0.32, with a deeper correction potentially targeting the October low around $0.27; conversely, a recovery could push ADA toward resistance near $0.38.
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