Cardano Stuck Below Major Moving Averages as Fed's Decision Looms

Cardano (ADA) is trading at around $0.165 on July 28, stuck below its major moving averages and flashing derivatives signals that consistently reject every recovery attempt.

The timing of this situation is crucial as the Federal Reserve's two-day meeting starts today, with the decision expected to be announced tomorrow, July 29.

With the Fed's previous decision led by Chair Kevin Warsh causing a $2 trillion loss in stocks, metals, and crypto within hours, analysts are divided on whether a dovish surprise will bail out ADA holders or if history will repeat itself with Cardano selling off again.

The derivatives data is indeed screaming bearish, with CoinGlass showing ADA's long-to-short ratio at 0.82, near its lowest in over a month, indicating more traders are betting on a drop than a bounce.

Funding rates have flipped negative, meaning shorts are now paying longs, a structural tell that the market is leaning down.