Cardano (ADA) has experienced a lackluster price performance, trading within a range with resistance at $0.40 and support at $0.31. This stagnation is coupled with a declining open interest, reaching its lowest since May 2023, signaling reduced trader interest.
Such sideways price action and low open interest typically suggest bearish sentiment, indicating that traders are exiting ADA positions. This lack of momentum is further exacerbated by large investors increasingly offloading their holdings, contributing to ADA's downward pressure.
As of now, ADA trades at $0.33, slightly above its support level. A negative Chaikin Money Flow indicator hints at possible selling pressure leading ADA towards breaking support. If the $0.31 support fails, Cardano's price could drop to $0.27.
Conversely, if sentiment shifts positively and buying interest renews, ADA might aim to surpass the $0.41 resistance, potentially sparking a rally towards $0.54, a level not seen since April.
The ongoing trend showcases a bearish outlook, but any change in market sentiment or buyer enthusiasm could significantly impact ADA's trajectory in the near future.
