Cardano hits record-low weekly RSI as pros load 2.5x longs

Cardano’s weekly Relative Strength Index fell to a record low while ADA traded at $0.1669, down about 39% over the past month. Exchange data show top traders on Binance hold more than 2.5 times as many long positions as short positions, while retail accounts are slightly net short with a long/short ratio near 0.74.

The token dropped below $0.20 for the first time since 2021. The decline accelerated after Cardano founder Charles Hoskinson posted “I’m taking a break. TTYL” on X on June 3, a message that coincided with an approximately 10% single-day fall. Hoskinson later clarified he was not leaving and had warned days earlier of a “wave of failures” among Cardano-based decentralized finance projects, citing macroeconomic pressure and governance gridlock. Several DeFi projects subsequently shut down or suspended services, and TapTools, a Cardano analytics platform, collapsed.

Governance actions affected ecosystem plans. Elected delegates known as DReps voted down a treasury proposal that would have allocated 7.8 million ADA to fund the Cardano Summit 2026 in Singapore, effectively forcing the event’s cancellation. In a May 30 statement the Cardano Foundation wrote, “The Cardano community has spoken and we respect the outcome.” Reports also emerged of senior staff at the Foundation being suspended during the same period.

The weekly RSI reading reached an oversold level that has appeared only twice before, prior to price recoveries in 2019 and 2022. Professional and institutional trading desks have increased long exposure: top traders on Binance are holding more than 2.5 times as many long positions as shorts. Retail traders show a long/short ratio near 0.74, creating one of the widest divergences between professional and retail sentiment on record.

The Leios protocol upgrade entered public testnet this month. Developers say the upgrade targets a large increase in transaction throughput, aiming for more than 1,000 transactions per second. ADA recorded a 1.96% gain on June 8.