- Cardano trades near $0.64 after a 7% weekly decline and fading market participation.
- Open Interest hits its lowest level of the year, signaling weakening trader confidence.
- If the downtrend continues, ADA could test $0.56, though a rebound toward $0.73 remains possible.
Cardano (ADA) is still struggling to find its footing. At the time of writing, the token hovers near $0.64, after slipping close to 7% last week. Market sentiment has cooled noticeably — derivatives data show fading trader confidence, with Open Interest (OI) dropping to its lowest level of the year and short positions on the rise. All signs point toward the possibility of another leg down, possibly pushing ADA below $0.60 if momentum doesn’t turn soon.
Derivatives Data Point to Growing Bearish Sentiment
Cardano’s futures Open Interest has fallen to $112.82 million, its lowest level since November 2024, according to Coinglass. This steep decline shows traders are backing away, closing positions instead of adding new ones — a classic signal that market participation is thinning out. When OI drops this sharply, it usually reflects uncertainty or a growing belief that prices could fall further.
The long-to-short ratio, sitting at 0.85, adds to that narrative. Any number below one means more traders are betting against the token than supporting it — and right now, ADA’s ratio is the weakest it’s been in a month. Combined, these two data points hint at an increasingly cautious market where sentiment leans bearish, and traders prefer sitting on the sidelines or taking short-term downside bets rather than building long positions.
Cardano Price Forecast: Bears Eye Sub-$0.60 Levels
ADA has faced persistent rejection at the 61.8% Fibonacci retracement zone near $0.73, sliding more than 15%afterward before stabilizing just under $0.65. The price managed to recover slightly over the weekend, but pressure remains heavy. If this correction deepens, ADA could fall toward $0.56, a zone that aligns with previous structural support levels.
The Relative Strength Index (RSI) currently sits around 37, below the neutral 50 mark — meaning momentum still favors sellers. Meanwhile, the MACD continues to flash a bearish crossover first spotted in early October, reinforcing the view that the short-term bias remains tilted to the downside.
Still, not all hope is lost. Should ADA manage to bounce back, the first test would be reclaiming the $0.70–$0.73region. Breaking through there could flip market sentiment and signal that bulls are stepping back in.
Outlook: Weak Hands Shaken, Accumulation Could Follow
For now, Cardano’s structure remains fragile. Traders are clearly nervous, but such washouts often lead to short-term relief rallies once weaker hands exit the market. If ADA can hold above $0.60, it might find a base for the next consolidation phase.
Still, with sentiment fading and derivatives pointing toward more downside, the path ahead could stay choppy. Patience — not panic — might be the smarter move for investors watching this correction unfold.
