ADA Short Selling Surges... Cardano Blocked by 100-Day Line

▲ Cardano (ADA)/ChatGPT generated image ©

Cardano is once again under bearish pressure, blocked by resistance at the 100-day moving average. In the futures market, analysis suggests that a warning sign has appeared for a short-term rebound as short-selling positions rapidly increase.

According to investment media FXStreet on May 12 (local time), Cardano (ADA) fell below $0.2800 again after a 4% rebound the previous day. The media analyzed that the 100-day Exponential Moving Average (EMA) acted as strong resistance, slowing down upward momentum.

Sentiment in the derivatives market is also leaning bearish. According to CoinGlass, ADA futures Open Interest (OI) increased by more than 4% in 24 hours, reaching $593.08 million. This indicates that market participants are increasing their positions, anticipating significant directional movements. However, the funding rate recorded -0.0018%, suggesting a weakening preference for long positions.

The long-short ratio was also recorded at 0.7212, indicating that short-selling positions continued to dominate buy positions. The media assessed that individual investor sentiment is gradually shifting towards bearishness. In particular, the combination of increased open interest and a negative funding rate was interpreted as a signal that the market is placing more weight on the possibility of a decline.

Technically, some analyses also suggest that the short-term rebound structure has not completely collapsed yet. ADA currently remains above its 50-day EMA of $0.2603. However, the Moving Average Convergence Divergence (MACD) shows the gap with the signal line narrowing, and the Relative Strength Index (RSI) has also fallen to 65, indicating a weakening of the overheated upward momentum.

On the upside, the 100-day EMA at $0.2870 was presented as the primary key resistance level. If buying pressure recovers, the next resistance is expected to be the 200-day EMA at $0.3696. Conversely, if a daily close below the 50-day EMA of $0.2603 occurs, the recent rebound trend could break, and the mid-to-long-term bearish trend could strengthen again.

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