- The retail and smart money market sentiments are aligned, with the focus of buying pressure being near $0.61.
- Funding rates rise in spite of falling open interest, which shows cautious optimism for derivatives.
Cardano [ADA] The sentiment is now overwhelmingly bullish, both in retail as well as smart money. This alignment of the two groups has been rare.
Market Prophit data, the crowd sentiment score sat at 1.52, at press time, while smart money tracked slightly lower at 0.72—both comfortably in positive territory.
CryptoQuant also reports that the 90 day Spot Taker CVD continues to be buy dominant, which reinforces their optimism. analytics.
Cardano was trading at $0.6218 at the time of press, after a drop of 3.08% over the last 24 hours. If price actions respect critical technical levels, then sentiment may become the driving force.
ADA Approaches Critical Demand Zone
ADA has hovered just below a crucial support level near $0.61. The price of this zone is stable since early May. The asset is still locked into a wider descending channel and the price has so-far respected its lower boundary.
Despite this drop, RSI indicator showed signs of reversal. The 14-day RSI printed a reading 36.62. The RSI indicates a growing weakening, as well as a potential opportunity.
Bulls can therefore take advantage of this sentiment to defend the level at $0.61. A bounce towards $0.84 within the channel becomes more and more feasible.
TradingView
On-chain derivatives data The picture is mixed. Open interest has fallen by 3.35% and is currently $746.81 millions. The drop in open interest suggests that some traders who use leverage may be reducing the risk of their positions.
The Funding Rate has turned out to be positive. At the time this article was written, it stood at 0.0096%. It meant that investors were prepared to pay extra to keep their exposure. This reflected a bullish belief despite the lower volume.
Outflows of stablecoins indicate liquidity issues
Overall liquidity on the market is decreasing, and the stablecoins’ total market capitalization has dropped by 3.25 percent in the past seven days to $31.38 millions.
Despite this downturn, Cardano (ADA) is defying the trend—taker buy dominance remains strong, indicating persistent buying interest.
This divergence highlights ADA’s capability to appeal to localized demands even as broader cryptocurrency inflows wane.
If the stablecoin market recovers and the price supports hold, ADA may be in a good position for a breakout.
Source: DefiLlama
Binance Futures data This shows a clear bias towards long positions amongst traders. As of June 17th, 73.54% of ADAUSDT permanent accounts are long while only 26.46 % of them are short. This results in a ratio of Long/Short of 2.78.
It is clear that most traders anticipate a return to current levels.
This optimism increases the possibility of a longer squeeze, if support at $0.61 is broken. The coming days will therefore test the strength of the bullish belief in the derivatives markets.
Does a bullish belief keep ADA at the top of key support?
The technical, the sentiment and buy-pressure are aligned at a pivotal point for ADA. The bulls must hold onto the support area of $0.61 to be able to reverse their direction towards the resistance in the upper channel.
A breakdown can invalidate these expectations and cause the market to shift rapidly from bullish to bearish. In the next few sessions, it will be determined if ADA’s bullish bias remains or erodes.
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Source: ambcrypto.com
