Cardano (ADA) Native Token Continues to Experience Selling Pressure Despite Recent Retest of Its Support

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.

Cardano's native token, ADA, encountered persistent selling pressure on Wednesday, slipping below key levels amid a broader market downturn. The price experienced a recent retest of its support but ultimately slipped further. ADA was trading at $0.665 by 07:24 ET (11:24 GMT), showing a 1.92% decrease over the last 24 hours.

Cardano Price Today

As crypto prices today saw some broader weakness, ADA price dropped by 1.42% over the last 24 hours, which kept it in close step with broader market trends. It is currently being traded at $0.6643, and it has a market capitalization of $23,430,560,144, which is down by 1.45% from a day ago. ADA’s price is estimated to be $29.89 billion in fully diluted valuation.

Investors’ activity also decreased, with 24-hour trading volume decreasing by 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 Increasing Bearish Sentiment

The funding rate of Cardano in the current futures market went below zero, which signals traders’ sentiment changed. Trading data obtained from Coinglass shows several instances where the percentage dropped to below zero—this happened 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 who are maintaining bearish bets are now paying to do so, which signals that market participants expect to see continued price declines. Although brief positive funding rates were recorded on March 24 and 28, they failed to hold as sentiment quickly returned to the downside.

On-Chain Indicators Point to Minimal 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 decreasing since mid-March. It was last seen below the zero level on March 21 and dropped 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 is still in an interesting role, which aligns with the current trend of ADA price moving lower.

Momentum Indicators Suggest Continuing Weakness

The Relative Strength Index (RSI) stands at 42.19, remaining below the neutral 50 mark. The index has stayed in a band between 40 and 45 for the past two weeks, which signals 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 providing 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 moving downward, and one cannot discuss any signs of crossover.

What Happened to Cardano (ADA)

Cardano is heating up as broader crypto prices cool down. Despite a recent retest of key support, ADA price slipped further amid a broader market downturn. The crypto behemoth saw key technical indicators turning more bearish, hinting at more weakness ahead.

Cardano faced selling pressure as broader market weakness continued, leading to a key support level being tested. After briefly bouncing off the 200-4hr Simple Moving Average (SMA) at around $0.68, which had been offering support since late March, the price experienced another decline.

As the price slipped below the SMA and encountered resistance at the 38.2% Fib level from the March 24 low to March 28 high, it signaled a lack of immediate support in the $0.675 to $0.68 zone.

Cardano Funding Rate Goes Deep into Negative Territory

The funding rate of Cardano in the current futures market went below zero, which signals traders’ sentiment changed.

As several reports by Benzinga highlight, a positive funding rate indicates that traders who are holding long positions are paying a fee to traders who are maintaining short positions, and vice versa. In essence, traders who are optimistic about the market and wish to see the price rise further are paying for the privilege.

However, the funding rate of Cardano slipped below zero once again on March 28, which signals that traders’ sentiment has changed.

Trading data obtained from Coinglass showcases several instances when