Bitcoin continues to struggle, falling to $75,000. The crypto market as a whole is suffering a major blow. Cardano is a cryptocurrency that ranks in the top 10.
In just 24 hours, it dropped by 6% to $0.267 on February 2nd.
The market became concerned when it bounced to $0.28. Despite the RSI falling below 30, a mark that was used to identify all lows under $0.30, previous bounces were volatile.
For traders, the fall below $0.30 was a turning point. They had previously viewed Cardano’s dip as an opportunity to buy. Has history been kind to people who took such a risk in these times?
Are Cardano bulls getting in?
On February 2, Open Interest (OI), despite ADA’s declining price, remained very high. OI was high all through Cardano’s fall.
In mid-January, ADA’s OI was up to an astonishing $840 Million. This increase was not due to a bullish mood.
CoinGlass
It was more likely that bears were positioning themselves in order to take advantage of the falling price for Cardano. If the price reverts to $0.32, and OI rises, this would indicate that bulls are taking over.
The big question now is whether they can sustain their momentum or if the market is too bearish to support a rally.
Cardano continues to fall, and whale orders are still rising
CryptoQuant’s data shows that whale orders for Cardano have increased with every price drop. Cardano was aggressively purchased by major players after the price fell to $0.80. Retailers remained hesitant.
CryptoQuant
You can also find out more about this by clicking here. “front-running” The accumulation of a strategy that has worked before was a signal. The whales were betting that Cardano would recover, despite a short-term view.
Cardano will continue to be supported, but is there a larger move in the future?
Cardano’s success depends on the support level $0.267, which has been crucial in 2024.
It was possible for it to rebound strongly if this level held. Next, the levels of local resistance were $0.32 – $0.358, and then resistance at $0.43. This would complete the double bottom pattern and lead to a positive reversal.
TradingView
A failure to hold this support may lead to a decline towards $0.13, based on Bitcoin’s weakening, a worse-case scenario. Bulls were required to hold this support zone in order to stop further losses.
Last Thoughts
- Cardano’s ability to sustain the crucial support zone between $0.22 – $0.267 is critical for its short-term future.
- Cardano’s future could be brightened by Bitcoin stability and the activity of whales.
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Source: ambcrypto.com
