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Cardano Faces Bearish Derivatives Positioning as Price Tests Critical Support Level

Negative funding rates and rising short interest surround Cardano as the token hovers near key technical cushions following an 8% weekly decline.

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Cardano traded near $0.202 on Friday after falling more than 8% over the week, holding just above a support band between $0.195 and $0.200. According to CoinGlass data, ADA's long-to-short ratio fell to 0.93, reaching its lowest point in a month, while funding rates turned negative at -0.0006%, signaling expanding demand for short exposure.

While concentrated short positions raise the potential for a short squeeze on any abrupt price recovery, on-chain and market data show mixed sentiment. CryptoQuant reported whale activity in futures markets alongside heating activity across spot and derivatives desks, though overall indicators remain largely neutral rather than decisively bullish.

From a technical perspective, ADA maintains immediate support above its 100-day exponential moving average at $0.200 and 50-day EMA at $0.198. However, upside momentum remains restricted below the 200-day EMA near $0.241, with the Relative Strength Index hovering just below 50 and the MACD indicator lingering in slightly negative territory. A break below $0.195 could open a move toward $0.173.

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