Cardano has rebounded from the $0.72 support level, but weak derivatives data clouds the outlook. Can ADA break past $0.77 to re-test $0.84?
As Bitcoin holds firm at $109,000, Cardano maintains its position above the $0.72 support zone. With the recent bounce, could Cardano re-challenge its $0.84 resistance ceiling?
Cardano Price Analysis
Cardano is up 11% this month despite volatile price movements on lower timeframes. On the 4-hour chart, ADA shows a bullish rebound from the 200-period exponential moving average (EMA) at $0.74. This marks an early reversal from the $0.72 demand zone, pushing the price toward the short-term resistance at $0.7745.
Currently, ADA is consolidating between the 200-day EMA and the upper resistance at $0.77. Despite choppy price action, the MACD and signal lines have formed a bullish crossover, supported by a new wave of positive histogram bars.
However, even with the positive alignment of the 50-, 100-, and 200-period EMAs, there is a risk of a bearish crossover between the 50- and 100-day EMAs. If ADA falls below the 200-day EMA, it may trigger a “death cross,” signaling potential downside.
For now, as major cryptocurrencies consolidate, Cardano remains stuck in a no-trade zone between $0.72 and $0.77. A potential breakout above this range could spark a rally toward $0.84, which was last seen on May 13 and May 23.
Conversely, a breakdown below the $0.72 demand zone could test the long-term support trendline near $0.70.
Gloomy ADA Derivatives Warns of Bearish Move
Amid heightened volatility, Cardano’s derivatives market shows signs of weakness. According to CoinGlass, open interest has dropped 4.42% to $897 million. Meanwhile, options volume has plunged 92% to 6.59K, with open interest in options falling to $374K
Overall, bullish sentiment among traders has weakened, with the funding rate dropping to 0.0067% from a peak of 0.019% on May 22.
Notably, long liquidations in the past 24 hours totaled $863K, compared to just $191K in short liquidations. This brings the total 24-hour liquidations to over $1 million, with significantly more long positions being wiped out.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
