Cardano retraced some of its losses but…

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The drop below $0.24 was accompanied by a large spot selling volume and short sellers with strong conviction.
• Another move downward was signaled after the structure flipped bearish once more.

The bearish outlook behind Cardano overall remained unchanged, as the price fell beneath a key lower timeframe level to shift the bias in favor of the sellers once more. The holders were at a loss and weighted sentiment was down.

How much are 1, 10, or 100 ADA worth today?

The bulls managed to effect a weak bounce after the recent sharp losses but lacked any conviction. After the developments of the past 48 hours, traders can expect another downward move for ADA.

Cardano retraced some of its losses on dwindling trading volume

Source: ADA/USDT on TradingView

The fall from $0.33 to $0.22 began a week ago. Highlighted in white are key support levels on the daily timeframe. The $0.297 and $0.271 failed swiftly, but buyers were just barely able to hang on to the $0.239 level. Yet, the bearish intent in the market was already evident.

The 4-hour RSI has been below neutral 50 over the past ten days. The Fibonacci retracement levels showed the 61.8% level was tested as resistance but the sellers did not budge. Moreover, the attempts to establish a bullish structure were thwarted when ADA fell below the $0.259 mark. This represented a higher low in the bulls’ endeavor to drive prices higher.

The Bollinger bands were retreating southward but began to pick up again in recent days as the move toward $0.3 failed. The $0.239 and $0.22 are expected to serve as support should Cardano face continued selling pressure. A foray as deep as $0.1939, the 23.6% extension level, cannot be ruled out either.

The swift depression in the Open Interest pointed toward bearish dominance

Source: Coinalyze

While the RSI underlined the bearish momentum behind Cardano over the past two weeks, the spot CVD highlighted the firm selling pressure behind the asset in June. The Open Interest also dived by just over $80 million since 9 June. Alongside the falling prices, the inference was that sentiment was bearish and capital flow into the market was drying up.

Read Cardano’s [ADA] Price Prediction 2023-24

Long positions were discouraged, and the majority of speculators are likely to want to remain sidelined until Cardano can establish an uptrend again. On June 9, the OI spiked alongside steeply falling prices to show that sellers were in the driving seat. This could be repeated in the coming weeks should ADA fall below $0.239 again.