Key Insights:
- ADA futures open interest dropped 2% to $460.52 million while $1.11 million in liquidations hit both long and short traders evenly.
- Positive 0.0078% funding rate signals traders still pay premiums to hold long ADA positions despite declining moving averages and muted momentum.
- Cardano defends $0.2695 Fibonacci support as price tests $0.2775 EMA, with $0.2928 emerging as next resistance level.
Cardano recovered nearly 1% on Monday after closing the previous session down close to 3%, as traders weighed derivatives pressure against technical support levels. ADA traded above $0.2770 at press time, attempting to stabilize near a critical moving average zone.
Besides the modest rebound, market positioning reflects caution rather than renewed conviction. CoinGlass data shows futures open interest declined almost 2% in 24 hours to $460.52 million, highlighting reduced appetite for leveraged exposure.
Liquidations rise as leverage resets
Additionally, liquidation data underscores the shift in sentiment across the derivatives market. Total liquidations reached $1.11 million over the past day, with $559,090 in long positions and $553,410 in short positions erased.
Consequently, the nearly even wipeout on both sides signals a broad reset in positioning rather than a one-sided capitulation. Traders appear to trim risk as volatility persists across the wider digital asset market.
Funding rate keeps bullish tilt intact
However, the funding rate remains positive at 0.0078%, showing that traders still pay a premium to maintain long exposure. This positive reading indicates that bullish bias has not fully faded despite falling open interest.
Moreover, the balance between declining leverage and positive funding creates a mixed backdrop for ADA. Retail sentiment remains divided as participants respond to both technical signals and macro developments.
Technical levels frame near-term outlook
On the daily structure, ADA tests the 50-period Exponential Moving Average near $0.2775 while the 200-period EMA stands higher at $0.2928. Both moving averages trend downward, which keeps the broader direction tilted to the downside.
Significantly, the 61.8% Fibonacci retracement at $0.2695 acts as immediate support, measured from the February 3 high of $0.3050 to the February 6 low of $0.2289. This level contains selling pressure and limits downside toward the 50% retracement at $0.2628.
On the four-hour chart, the Moving Average Convergence Divergence slips below the signal line and prints a muted histogram. The Relative Strength Index holds near 49, reflecting balanced momentum between buyers and sellers.
Hence, ADA needs a decisive move above the 50-period EMA to build strength toward $0.2928. Conversely, a break below $0.2695 could expose $0.2528, the 38.2% retracement level, as the next support in an extended pullback.
