Cardano price trades red on Thursday, posting two consecutive red candlesticks over the previous two days. The derivatives data shows signs of weakness, with ADA’s short bets rising amid falling Open Interest (OI), dropping to November 2024 lows. On the technical side, the outlook is bearish, with Cardano close to a price level not seen since October 21, 2023. Cardano’s futures OI at Binance exchange dropped to $90.21 million on Thursday, the lowest level since early November 2024, and has been steadily falling since mid-January.
CoinGlass’s ADA long-to-short ratio stands at 0.95 on Thursday. Cardano’s price declined by more than 15% last week, retesting the October 10 low of $0.27 on Saturday. ADA has traded red since Tuesday and, as of Thursday, is trading at $0.28. The Relative Strength Index (RSI) on the daily chart stands near 30, pointing downward toward the oversold territory, indicating strong bearish momentum.
The Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on January 18, which remains intact and thus further supports the negative outlook. If ADA continues its downward trend, it could extend the decline toward the October 21, 2023, low of $0.24. On the other hand, if ADA recovers, it could extend the recovery toward the daily resistance at $0.32.
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