The price of Cardano (ADA) continues to face selling pressure as it trades in the red, falling below the $0.37 mark on Thursday, after losing more than 7% of its value since the beginning of the week. This correction is likely not over yet, as ADA’s social dominance has significantly declined, and the activity of dormant wallets has increased — signals often associated with widespread bearish sentiment in the trading community. From a technical perspective, the weakening of momentum indicators continues to support the scenario of prolonged short-term downside risk.
On-chain signals for Cardano turn negative
Santiment’s Social Dominance index for Cardano is clearly reinforcing the negative outlook. This index reflects the proportion of discussions related to ADA across media platforms. Since mid-November, Social Dominance has been steadily declining, reaching its lowest point of the year at 0.032% on Thursday, indicating that market interest in Cardano is waning significantly, and investor sentiment is becoming increasingly pessimistic.
ADA Social Dominance Index Chart | Source: SantimentAdditionally, Santiment’s Age Consumed index is also sending concerning signals. Spikes in this index suggest that “sleeping” tokens — held in wallets for a long time — are beginning to move. In on-chain analysis, this often signals short-term market reversals.
For Cardano, historical data shows that after each significant increase in Age Consumed, ADA’s price tends to enter a correction phase as investors transfer tokens to exchanges, increasing selling pressure. The most recent spikes on 12/10 and this past Monday suggest ADA may be preparing for a new downtrend.
Cardano Age Consumed Chart | Source: SantimentIn the derivatives market, indicators also align with this pessimistic outlook. OI-Weighted Funding Rate data from Coinglass shows that traders betting on a decline in ADA are currently dominant over those expecting growth.
Specifically, the funding rate turned negative on Thursday, dropping to -0.0019%, meaning the short (Short) traders are paying fees to long (Long) traders. Historically, whenever the funding rate shifts to negative, ADA’s price has experienced notable declines, further confirming short-term correction risks.
ADA Funding Rate Index | Source: Coinglass## Cardano Price Forecast: Bears dominate momentum
The price of Cardano (ADA) failed to break above the upper trendline of the descending wedge pattern — formed since mid-October by connecting successive peaks and troughs — during the trading session on 12/9. After this rejection, ADA plunged 21.8% and continued its decline into mid-week. As of Thursday, the coin remains under selling pressure, dropping to a two-month low around $0.36.
In a continued downtrend scenario, ADA risks extending its correction toward the deeper support zone at the October 10 bottom, near $0.27.
Daily ADA/USDT Chart | Source: TradingViewTechnical indicators are clearly tilted bearish. The Relative Strength Index (RSI) on the daily timeframe is at 32, approaching oversold territory, reflecting that bearish momentum is dominant. Meanwhile, the MACD indicator confirmed a bearish crossover on Wednesday, further strengthening short-term weakening risks.
However, if ADA experiences a technical rebound, the recovery could target the 50-day exponential moving average (EMA) at around $0.47.
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