CandleFocus

Cardano (ADA) Open Interest Drops to 16-Month Lows, Sparking Fears of a 21% Price Fall

Author: Content Editor
The recent decline in the price of Cardano (ADA) has caused derivatives traders to exit the market, leading to a significant drop in open interest. As the coin's price slumped, its open interest reached its lowest level in 16 months. This decline suggests that traders are losing interest in ADA's potential for upward price movements and are exiting the market to avoid further losses. However, there are still futures traders opening positions in favor of a price rally, as indicated by the coin's positive funding rate. Despite this, long positions have faced increasing liquidations as ADA's price continues to fall. Currently trading at $0.34, ADA is just above a crucial support level of $0.31. If selling pressure intensifies and this support is not defended, a decline of up to 21% to the August 5 low of $0.27 could be inevitable. However, a shift in market sentiment from bearish to bullish could lead to a rebound in ADA's price, but it would need to break through the resistance level at $0.39 for this to occur.

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