Cardano holds $0.20 support as bearish derivatives signals limit recovery

Key takeaways

• Cardano trades near $0.207 after falling more than 8% during the previous week.
• ADA's long-to-short ratio of 0.88 indicates bearish positioning among derivatives traders.
• The funding rate turned positive at 0.0052%, showing a mild bullish bias despite the elevated short positioning.
• ADA must hold the $0.199-to-$0.200 support zone to avoid a decline toward $0.195, $0.173, or $0.150.

Cardano (ADA) traded near the critical $0.200 support zone on Monday after declining more than 8% during the previous week.

Although ADA remains above two important short-term moving averages, mixed derivatives data and sell-side pressure from large traders suggest that recovery attempts could encounter resistance at higher levels.

ADA long-to-short ratio signals bearish sentiment

Cardano's derivatives indicators present a cautious and somewhat conflicting outlook.

CoinGlass data shows ADA's long-to-short ratio at 0.91, close to its lowest level in a month. A reading below one indicates that traders hold more short positions than long positions, reflecting expectations of further price weakness.

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