Cardano Faces Resistance as Derivatives Signals Limit Recovery

Cardano (ADA) traded near $0.207 on Monday after falling more than 8% during the previous week, raising concerns about a potential decline towards lower support levels.

The long-to-short ratio of ADA's derivatives traders stood at 0.88, indicating bearish positioning and expectations of further price weakness.

However, the funding rate turned positive at 0.0052%, showing some bullish bias among traders despite the elevated short positions.

To avoid a decline towards $0.195, $0.173, or $0.150, ADA must hold the critical support zone of $0.199 to $0.200.