Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA dipped below January lows and retested December lows.
- CVD rose, but OI stagnated.
Bitcoin [BTC] dropped to $25k again at the time of writing, exposing altcoins to more price dumps. Cardano [ADA] was no exception, as it declined over 30% on the weekly front, as per CoinMarketCap. However, there was an attempt to reverse recent losses in the past 24 hours.
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ADA’s price was $0.2622 at press time, up 9% in the past 24 hours. A dovish FOMC stance on the 13/14 June meeting could tip bulls to gain more ground. But the likely rally could be a bull trap if BTC falters at $26.6k and fails to flip to a bullish bias on the higher timeframe.
Will bulls reverse recent losses?
Source: ADA/USDT on TradingView
So far, ADA has retreated from its highest price level in 2023 ($0.462) in mid-April to December lows of $0.221 before reversing part of the losses at press time. The Fibonacci retracement tool (yellow) was plotted between April’s high and the recent low on 10 June.
The RSI has been eerily below the median point since mid-April, declining deeper in the oversold zone at press time. It shows increased selling pressure. The price dump was also marked by increased trading volumes as selling pressure intensified.
Hence, sellers could drag ADA again to $0.22 or $0.164 if the sentiment persists and BTC fails to flip bullish.
A bullish BTC, especially if FOMC takes a dovish stance, could set ADA to rally and target the 50% Fib level ($0.341). But bulls must clear the obstacle at $0.3 to gain leverage. Such a move could help the bulls gain more ground and reverse recent losses.
CVD increased, but OI stagnated
Source: Coinalyze
On the 1-hour chart, the aggregated CVD (Cumulative Volume Delta) spot, which tracks buying and volume orders, rose sharply in the past few hours. It denotes buyers pushing back sellers.
How much are 1,10,100 ADAs worth today?
However, the bulls’ effort could be short-lived if open interest (OI), the number of open contracts on the futures market, remains below $130 million.
The OI has stagnated below $130 million after a sharp drop from $180 million on 10 June. This could delay a strong recovery unless BTC surges above $27k.
Source: https://ambcrypto.com/as-ada-bleeds-out-bears-intensify-pressure/