Cardano (ADA-USD) dropped over 15% last week to hit near $0.19. Meanwhile, fighting in the Middle East sparked a risk-off move across global markets. As a result, investors pulled cash out of crypto and bought safe assets like the U.S. dollar. Furthermore, this change in investment inflows left altcoins without major buying support during Monday trading.
At the same time, derivatives data shows clear price risk for Cardano. Specifically, the long-to-short ratio on CoinGlass fell to 0.92. In fact, this reading is the lowest mark in over a month. A ratio under 1.0 shows that most traders expect lower prices, which helped push Cardano funding rates negative to -0.0001%.
Therefore, short position holders now pay long traders to keep positions open. These metrics put pressure on ADA’s current price levels, which makes a quick rebound hard to sustain for now.
Geopolitical Escalation Moves Capital Away from Crypto Assets
Additionally, new military action in the Middle East hit financial markets hard. U.S. forces launched strikes on two Iranian missile sites on Larak Island.
In response, Iran fired back with ballistic missiles from five cities. Iranian forces also launched anti-ship cruise missiles toward the Strait of Hormuz. Ultimately, these attacks pushed traders toward the U.S. dollar and away from altcoins. Hence, the rising risk premium continues to weigh heavily on digital token prices across major exchanges.
Technical Charts Test ADA’s Key 50-Day Moving Average Support Floor
On the technical side, Cardano holds right above its 50-day moving average at $0.191. However, the token sits below its 100-day moving average at $0.197 and its 200-day average at $0.245. Meanwhile, the Relative Strength Index sits at 47, which confirms that buying momentum is fading fast.
Consequently, a drop below the $0.191 mark opens a path to $0.173, $0.156, and $0.150. On the flip side, buyers must clear resistance at $0.195 and $0.197 to test $0.245.
At the time of writing, ADA’s price is sitting at $0.1963.
