Coinspeaker
Cardano Faces Bearish Pressure: Will ADA Price Hold Fort at $0.65?
As top altcoins reflect a minor recovery after a massive dump earlier this week, Cardano
ADA
$0.77
24h volatility:
0.0%
Market cap:
$27.54 B
Vol. 24h:
$1.77 B
shows increased upside potential. Currently, the ninth-biggest cryptocurrency showcases a 24-hour surge of 5.64%.
The ADA token trades at a market value of $0.76 while holding a market cap of $26.78 billion. With the potential recovery hinting at increased optimism, will Cardano reclaim the $1 psychological mark? Let’s find out.
Cardano Faces Bearish Pressure under $1
In the daily chart, the Cardano price trend showcases an extension in the bearish pullback. With an intraday pullback of 6.62%, Cardano creates a bearish engulfing candle, signaling strong selling pressure.
Photo: TradingView
The bearish pullback reaches the $0.80 psychological mark, gradually undermining the lower price rejection witnessed yesterday. With the surge in selling pressure, the daily RSI line is on the verge of crossing under the oversold boundary line, indicating potential bearish exhaustion.
Furthermore, Cardano has lost the S1 pivot support level at $0.79553, adding to the bearish outlook. Hence, the downfall in Cardano is likely to test the next support level at the S2 pivot level, which is priced at $0.65.
However, the oversold RSI line projects a potential possibility of a bullish reversal if the broader market stabilizes. In such a case, the S2 pivot level at $0.98 is a potential price target.
Hence, Cardano shows minor slim chances for a myopic reversal run to the $1 psychological mark in the short term.
Whale Activity: Bearish Moves Signal Caution
Amid the grave danger of a pullback to $0.65, Ali Martinez, a crypto analyst, has highlighted a bearish move from the whales. Using the data from Santiment, Martinez has highlighted whales offloading 330 million ADA tokens without any buybacks at play.
Whales have offloaded over 330 million #Cardano $ADA and haven't bought the dip yet! pic.twitter.com/IATZgaPQDv
— Ali (@ali_charts) February 4, 2025
Currently, the 330 million ADA tokens are valued at $280 million, adding to the bearish pressure on the ADA price. The lack of buyback activity from whales reflects a cautious sentiment in the market, which could further intensify selling pressure if broader market conditions deteriorate.
A Glimmer of Optimism in Cardano
As the bearish influence over whale activity in the price chart is evident, the bullish speculation serves optimism on the derivatives side. The Cardano open interest has surged by 2.15% over the past 24 hours, reflecting renewed interest from traders.
Photo: CoinGlass
Furthermore, the long-to-short ratio over the past 24 hours remains at 0.9673, hinting at a slightly greater number of bearish positions at play. However, the open interest has returned to positive levels after a sharp drop to -0.0309%.
Currently, the open interest stands at 0.0005%, revealing an extremely minor premium to be paid by buyers to hold long positions. While the optimism is significantly lesser than expected, it gives a fresh approach compared to the price analysis and whale activity.
If broader market conditions stabilize and buying pressure increases, ADA could target $0.98 in the near term. Conversely, failure to hold key support levels could result in a pullback toward $0.65 before any meaningful recovery.
Cardano Faces Bearish Pressure: Will ADA Price Hold Fort at $0.65?
