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.