ADA's price drop represents a significant shift in momentum, as the asset struggles to hold key support levels. A daily close below $0.70 could further expose ADA to downside risks, potentially accelerating its correction.
Cardano (ADA) price took a nosedive on March 23, dropping sharply by 22.69% to trade at $0.69 amid a broader market downturn triggered by the Trump tariffs.
ADA price faced a strong resistance level at $0.95, which was bolstered by a massive $9.65 million in short positions. This selling pressure pushed ADA price below key support levels. However, bulls attempted to cushion the fall by setting up crucial support at $0.88 with about $6.30 million in long positions.
This development could be attributed to traders betting against ADA price after its recent rally was halted at the resistance zone. However, theịp price action showed a strong interest in buying the dip, which could propel ADA price toward higher levels if market conditions shift.
Despite ADA price struggles, investor sentiment remained bullish, with open interest in Cardano futures reaching a record high of 1.31 billion ADA, or about $1.21 billion. This engagement by traders could enhance liquidity in the market, providing the necessary momentum for a potential rebound.
According to Cryptorank data, ADA price has performed exceptionally well in February, with an average growth rate of 31.3%. If this trend continues, the asset could attempt to recover in the upcoming weeks.
Major exchanges, including Gate.io, Binance, Bybit, and Bitget, drove the increase in open interest, reflecting widespread participation by investors. Gate.io led with the highest share at 23.51%, followed by Binance (22.91%), Bybit (21.69%), and Bitget (20.68%).
This distribution highlights the anticipation among traders on multiple platforms for a shift in ADA price momentum. If market conditions improve and buying pressure rises, Cardano could ascend to higher price levels, aiming for the $1 mark in the near future.
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