- ADA funding rates turn negative, signaling dominant bearish sentiment in futures markets.
- On-chain CMF remains below zero, indicating persistent selling pressure and low accumulation.
- RSI and MACD show weak momentum, suggesting ADA may face further declines below $0.65.
Cardano’s native token ADA continues to experience selling pressure amid a broader market downturn. The price slipped below key levels despite a recent retest of its support. ADA was trading at $0.665 as of press time, following a 1.92% drop over the last 24 hours.
Over the last 24 hours, Cardano’s price plummeted by 1.42%, which was quite in tune with broader market trends. It is currently trading at $0.6643 and has a market capitalization of $23,430,560,144, which has fallen by 1.45% from a day ago. ADA’s fully diluted valuation is estimated at $29.89 billion.
Investor activity has also decreased, with the 24-hour trading volume falling 17.88% to $653.3 million. The volume-to-market cap ratio stands at 2.78%. Additionally, ADA’s circulating supply is at 35.26 billion, out of a maximum supply of 45 billion tokens.
Derivatives Market Shows Rising Bearish Sentiment
The funding rate of Cardano in the current futures market has gone below zero, meaning traders’ sentiment has changed. Trading data obtained from Coinglass demonstrates several instances when the percentage dropped below zero—this occurred between March 28 and April 1, which also corresponds to the drop from above $0.70 to below $0.66.
A negative funding rate indicates short positions are dominant. Traders maintaining bearish bets are now paying to do so, signaling that market participants expect continued price declines. Although brief positive funding rates were recorded on March 24 and 28, they failed to hold as sentiment quickly reverted to the downside.
On-Chain Indicators Signal Limited Accumulation
Chaikin’s money flow is currently at -0.05, which means there is less buying pressure. TradingView provides information on how the CMF has been declining since mid-March. It was last seen below the zero level on March 21 and fell as low as nearly -0.30 on March 25, but it slightly reversed and remained negative.
The CMF calculates the simple average of accumulation and distribution with a consideration of the relative volume. Values below zero mean that selling pressure dominates, which is in line with the current ADA price action.
Momentum Indicators Point to Ongoing Weakness
The Relative Strength Index (RSI) is at 42.19, remaining under the neutral 50 mark. The index has ranged between 40 and 45 for the past two weeks, indicating mild bearish momentum and a lack of strong buying support.
The MACD also indicates a bearish outlook. The MACD line is below the signal line, thereby giving a bearish signal. Currently, the MACD line is -0.003, with a signal line of -0.021, resulting in a negative histogram of -0.025. These lines are still downward, and one cannot discuss any signs of crossover soon.
FAQs:
Cardano is under pressure due to negative technical indicators, including falling trading volume, bearish momentum signals, and declining funding rates. These suggest traders expect further price drops.
A negative funding rate indicates that short positions are dominant, with traders paying to maintain bearish bets. This reflects a lack of confidence in short-term price gains.
No, the Chaikin Money Flow (CMF) remains below zero, signaling weak accumulation and ongoing selling pressure. This supports the broader bearish sentiment seen in technical indicators.
