Cardano Drops to $0.20 Under Derivative Pressure

Cardano is trading around $0.201 on Monday, having dropped below $0.202: pressure persists from derivatives, the spot market, and technical indicators. The decline has lasted for three consecutive weeks, and since the beginning of October, ADA has lost more than 20%. The token remains below several key moving averages, indicating a lack of sustainable recovery from buyers.

According to CoinGlass, the long-to-short ratio for Cardano on Monday was 0.92 – close to the lowest in over a month. A value below one indicates that short positions outweigh long ones. ADA's funding rate has turned negative at −0.0032%: short position holders pay long holders to maintain positions. Together, these indicators confirm a weak trend, although they do not guarantee a continued decline. CryptoQuant notes large whale orders and signs of overheating in the futures market, and its spot and futures indicators show selling dominance. Large orders alone do not determine the direction of whale activity.

The daily technical picture remains bearish: the price is below the 50-, 100-, and 200-day exponential averages, which are in the range of approximately 0.218–0.237 and form barriers above. The relative strength index is 33 – just above the oversold threshold of 30, leaving room for a short bounce. The MACD remains negative, its line below the signal, with no reversal confirmations.

The nearest resistance is breaking the previous trend line around $0.213. Above that is the 100-day average at $0.218 and the 50-day at $0.224. Further up is around $0.236 with the 200-day average at $0.237, then $0.245 and $0.299. Below, the nearest reference point is the psychological mark of $0.200.

From a technical standpoint, a return above $0.213 would be the first improvement. For a more convincing recovery, ADA needs to overcome the moving averages with increased momentum and reduced selling pressure.