ADA Price Fails to Hold Above Critical Support Zone Amid Bearish Sentiment

Cardano's (ADA) price has inched above its critical support zone after losing over 6% this week, trading at $0.206 on Friday.

The weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook for ADA, with a decisive close below the support zone potentially triggering a deeper correction.

Derivatives metrics show a bearish bias, with CoinGlass' long-to-short ratio for ADA reading 0.91 on Friday, nearing its lowest level in a month. A ratio below one indicates bearish sentiment, as traders bet that asset prices will fall.

The ADA funding rate has also flipped negative on Friday, reading -0.0007%, indicating shorts are paying longs and reflecting a bearish outlook for Cardano.