Cardano Struggles as Weak Inflows and Skepticism Hold Back Recovery

Cardano’s financing rate has fluctuated between positive and negative over the last week, indicating erratic market sentiment. The fact that there are currently more short contracts than long positions indicates that traders anticipate more drops. This has put downward pressure on ADA’s price, making recovery difficult.

Supporting the fight is Cardano’s Chaikin Money Flow (CMF) indicator, which has remained in the red for three weeks. This means that more money is leaving the asset than entering, which is low investor sentiment. Even if there was a slight increase recently, cumulative inflows are modest, thus a significant short-term recovery is unlikely.

The price of Cardano is currently below the important resistance level of $0.70, at $0.68. The altcoin doesn’t seem to have much upward momentum as it seems to be stabilizing between $0.77 and $0.70. If the dominant attitude remains bearish, ADA may decline considerably more to $0.62.

However, if investors see the current price as an opportunity, Cardano could break above $0.70 and aim for $0.85. This would shift market sentiment and boost confidence. For now, ADA remains under pressure, with traders watching for signs of stronger support.