Cardano (ADA) Gains Attention as Traders Increase Long Positions Despite Mixed Price Action and Weakening Technical Indicators

Cardano (ADA) is gaining attention as traders increase long positions despite mixed price action and weakening technical indicators. ADA has remained near $0.67

Cardano (ADA) has come into the traders’ view after technical indicators showed mixed price action and derivatives data showed traders opening more long positions.

ADA price hovered at nearly $0.67 in the Tokyo morning trading session, following a recent rally above the $0.685 level before encountering resistance at the 100-day Simple Moving Average (SMA) at $0.694.

As of press time, ADA was trading at $0.6702, showing a small 0.08% daily decrease. The day’s trading pattern was one of volatility, with the price surging early in the session before retreating toward the $0.658 level. The late rebound brought the price back above $0.66, but momentum appeared limited.

The 24-hour trading volume declined by 29.44%, settling at $463.79 million. Cardano maintains a market capitalization of $23.62 billion, holding the ninth spot among cryptocurrencies by market cap. Circulating supply stands at 35.24 billion ADA out of a maximum of 45 billion tokens.

Despite the overall downtrend through March, ADA continues consolidating above the $0.60-$0.62 support area. The price structure remains within an ascending trendline while approaching a descending triangle’s apex. Some analysts view this alignment as a key pivot point. A breakout above the triangle’s resistance could open a move toward the $1.20 region.

Technical Indicators Reflect Ongoing Downside Pressure

Technical data from TradingView showed weak buying momentum. The current Relative Strength Index (RSI) value stands at 33.27, demonstrating market oversold positions while highlighting ongoing negative investor sentiment. The indicator has persisted under the crucial 50-neutral threshold for the last two weeks.

The Moving Average Convergence Divergence (MACD) remains in the negative territory. The MACD line reads -0.015, slightly under the signal line at -0.014, with no current crossover. The histogram shows minimal divergence, reinforcing the lack of immediate reversal signals.

Derivatives Market Shows Bullish Tilt Despite Volume Decline

While trading volume decreased, data from major exchanges showed an increase in bullish positioning. The ADA/USDT long/short ratio is 2.90 on Binance and 3.61 on OKX. Top trader data also showed a bias toward long positions, with Binance accounts posting a ratio of 2.55 and positions at 1.12.

Open interest remains relatively stable at $791.83 million, showing only a 0.07% drop. The decline in options trading volume was significant, reaching 92.94% while open interest dropped to 0.27%.

The crypto market exhibited more losses from long positions due to $1.29 million in liquidations during the last 24 hours while short positions faced only $318.66K in liquidations demonstrating ADA gained support from unexpected trader movement.

Takeaways

* Cardano (ADA) displayed mixed signals with weak technical indicators but strong derivatives market signals.

* Technical analysis showed RSI in oversold territory and MACD in the negative zone.

* Derivatives data showed a strong preference for long positions and stable open interest.

* ADA continues to consolidate above the $0.60-$0.62 support area.

* Some analysts highlighted the significance of the descending triangle apex.

About Cardano

Cardano is a decentralized public blockchain and cryptocurrency founded in 2015 by Charles Hoskinson, a co-founder of the cryptocurrency platform Bitcoin. It is marketed as a platform for "third-generation" cryptocurrencies aiming to provide more advanced features and capabilities than Bitcoin and Ethereum.

Cardano is designed to be a highly scalable and sustainable blockchain that can support a wide range of applications, including smart contracts, dApps, and defi. It uses a unique consensus mechanism called Ouroboros, which is based on proof-of-stake (PoS). PoS is designed to be more energy-efficient than proof-of-work (PoW), the consensus mechanism used by Bitcoin.

Cardano also has a strong focus on academic research and peer-reviewed code. Its development is guided by a team of engineers, mathematicians, and cryptographers.

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