Cardano #ADA suffered a sharp sell-off on Monday, plunging nearly 8%. Many traders closed positions in the derivatives market, shrinking open interest by $44 million. It rebounded slightly on Tuesday and is currently at $0.2393, still down 5.6% over 24 hours✨.
The price is currently holding above the 50-day moving average at $0.2302, but the 200-day moving average at $0.2414 is acting as strong resistance. The high proportion of long accounts, combined with negative funding rates, makes the market structure relatively fragile. Key support is at $0.2288; if it breaks, the price could fall further to $0.1894. For a sustained rebound, it needs to hold above $0.2414 and move toward $0.2561. This rebound has come alongside declining open interest, indicating leveraged funds are exiting. Spot buying alone is unlikely to drive a rapid recovery. $ADA
The price is currently holding above the 50-day moving average at $0.2302, but the 200-day moving average at $0.2414 is acting as strong resistance. The high proportion of long accounts, combined with negative funding rates, makes the market structure relatively fragile. Key support is at $0.2288; if it breaks, the price could fall further to $0.1894. For a sustained rebound, it needs to hold above $0.2414 and move toward $0.2561. This rebound has come alongside declining open interest, indicating leveraged funds are exiting. Spot buying alone is unlikely to drive a rapid recovery. $ADA