ADA Price Risks Further Downside to $0.27 as the Bearish Grip Mounts

Highlights:

• The Cardano price is stabilized at $0.34, slightly higher than the support zone of $0.33 today.
• The derivatives market is experiencing declining open interest, which indicates the loss of investor confidence.
• The bearish mood is observed in the market as ADA risks further decline to $0.27.

The price of Cardano (ADA) is hanging at approximately $0.34 on Monday. This marks a 1.6% drop in the past 24 hours. The declining Open Interest (OI) also reinforces the current correction, which reinforces the declining investor participation. Technically, the momentum is controlled by bears, which indicates that Cardano price continues the downtrend towards the $0.27 mark. 

The futures Open Interest (OI) of Cardano in the Binance exchange fell to a minimum on Sunday to $108.55 million. This is the lowest level according to Coinglass data since December 25. This decline in OI indicates the declining investor involvement in the market and is a negative indicator, which may cause ADA to fall further.

The Cardano trading pair indicates that the market is testing a critical juncture at the major support area around the $0.33. The price of Cardano seems to be developing a possible reversal that is likely to be a bullish one, as defined by the chart after a long-term downward trend since middle October 2025. At this, the price movement is consolidating at the level of a significant area of support($0.33), which has been functioning as a powerful floor. This is one of the areas where the rejection had been preset, indicating that the ADA buyers are defending it.

ADA Price Risks a Drop to $0.27

ADA is at a neutral territory, as the Relative Strength Index (RSI) reading is approximately 40.73. It is, however, below the 50-zone, which implies that the bears remain in power. Meanwhile, the RSI needs to move out of the neutral 50 level to sustain the recovery rally.

The Moving Average Convergence Divergence (MACD) lines are also bearish, with the fading red histogram levels on the negative side of the zero line. The traders need to be careful because the signal line remains above the MACD, and this shows that the market is experiencing selling pressure.

If the Cardano price supports at the $0.33 level hold, the chart shows the potential upside target to the $0.38 area, which coincides with the immediate resistance area. This marks a possible rebound of around 12% from current price levels. But the broader trend is bearish, as ADA is still below the short-term ($0.38) and the long-term resistance($0.63).

Meanwhile, only a break above the $0.63 level would affirm a shift back to a long-term bullish sentiment. In the meantime, the traders must wait to see the reversal confirmed by a strong daily close above the current resistance of $0.38, with improving RSI and volume indications. On the other hand, if the bears persist in the downward trend, the price of ADA is likely to fall further. The further support area sits around the $0.30-$0.27 lows.