Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- $0.3035 resistance level could offer intense resistance upon a retest.
- Declining OI along with a negative funding rate revealed significant bearish sentiment.
Altcoins continued to suffer massive losses in the aftermath of regulatory issues surrounding major crypto tokens. Cardano [ADA] wasn’t exempted; it recorded a 38% price drop between 5 June and 10 June.
Read Cardano’s [ADA] Price Prediction 2023-24
With Bitcoin [BTC] slowly climbing into the $26k price region, ADA posted 11.6% gains to trade at $0.2744. While this brought temporary reprieve for bulls, ADA’s long-term price movement hinted at more bearish activity.
Bullish rebound could be short-lived as bears hold sway
Source: ADA/USDT on Trading View
ADA’s upswing in March saw the price rise to a year-to-date high of $0.4622. However, the price was rejected at that level with ADA sinking to the $0.3760 support level. The bullish defense of this key support level saw price hover above and below it between 4 May and 4 June before giving way to intense selling pressure.
This flipped ADA’s market structure to bearish on the daily timeframe, as the price broke the bullish lower high before sinking to the December 2022 low of $0.2395. Yet, the strong buying pressure at the $0.2395 level led to a quick rally for ADA.
Despite the swift rally, chart indicators pointed to a continuation of the bearish momentum. The Relative Strength Index (RSI) declined into the oversold zone on 8 June with the recent gains having no effect. This signified the intense selling pressure on ADA. The On-Balance Volume (OBV) also echoed the price dump with a 940.3 million drop in trading volume.
This could see sellers drag ADA further down to $0.2000 or $0.1750, if the bearish sentiment persists. On the flip side, a bullish BTC could rally buyers. However, bulls will need to clear the obstacle at the $0.3035 resistance level before pushing for more leverage.
How much are 1,10,100 ADAs worth today?
Declining OI showed a lack of interest in a bullish reversal
Source: Coinalyze
Data from Coinalyze on the four-hour timeframe showed that the Open Interest (OI) declined, despite the bullish rebound. This revealed market speculators’ disinterest in a bullish rally for ADA.
Similarly, Spot CVD continued its downswing to highlight the bearish dominance. Furthermore, the Funding Rate has been negative since 10 June. This signaled that ADA’s bullish rebound could be short-lived, as bears wait for a retest of the $0.3035 resistance level for more shorting opportunities.
