Cardano’s Price Recovery Stalls Amid Weak Inflows and Investor Skepticism

Cardano (ADA) has faced ongoing challenges in its attempt to regain momentum, with its price struggling to break key resistance levels. The combination of weak inflows and growing skepticism among traders has prevented a meaningful recovery, leaving the market in a state of uncertainty.

Market Sentiment Remains Bearish

Over the past week, Cardano’s funding rate has fluctuated between positive and negative, reflecting a highly unstable market sentiment. Many traders have taken advantage of the decline by opening short contracts, leading to short positions outweighing long ones. This imbalance suggests that market participants remain cautious and anticipate further price drops.

Adding to the bearish outlook, Cardano’s macro momentum has been hindered by a lack of investor confidence. The Chaikin Money Flow (CMF) indicator, which tracks capital inflows and outflows, has remained below the zero line for the past three weeks. This indicates that investors are pulling money out of Cardano rather than injecting fresh capital, creating a significant barrier to price growth.

Although the CMF has shown a minor uptick recently, the overall trend of negative netflows remains intact. Without a sustained increase in buying pressure, Cardano’s struggle to regain strength is likely to persist.

Can ADA Overcome Resistance?

At present, Cardano’s price sits at $0.68, hovering just below the crucial resistance level of $0.70. The cryptocurrency appears to be consolidating between $0.70 and $0.77, a range that suggests a lack of upward momentum and a potential prolonged period of stagnation.

Should bearish sentiment continue, ADA could fail to break the $0.70 threshold, increasing the likelihood of a further decline toward $0.62. Such a downturn would reinforce the current negative trend and make a recovery more difficult. Conversely, if investors view the current price levels as an opportunity, a breakout above $0.70 could push Cardano toward $0.77 and even $0.85. This would invalidate the bearish outlook and open the door for a stronger rally.