Cardano stalls at support, eyes higher resistance despite bearishness

Open Interest in Cardano has remained stagnant between $0.68 and $0.447, demonstrating a lack of speculative sentiment in the market. Buyers, however, are looking to push the value for a higher resistance so that the token eventually breaks out at $1. Fibonacci is bearish, and so is the 1-day RSI, with the latter delivering a reading of 35. The 1-day RSI has opened the door for a further decrease in ADA value.

The CMF indicator demonstrates the market’s potential for buying pressure. This comes after Cardano attempted to test the resistance at $0.52 for a while. The ecosystem rejected the bulls’ attempts to recover. They will continue to keep the card in their hand.

Altcoins are making a recovery in the market. ADA, for one, is up by 2.07% in the last 24 hours. The market cap is replicating that sentiment at the time of writing this article. The 24-hour trading volume is down by 33.83%. The market cap is likely to see an uptick above $16 billion for a while. ADA is currently trading at $0.4529. ADA price forecast speculates that the token will make a breakthrough at $0.97 by the end of 2024. It could alternatively exchange hands at $0.64 by year-end.

This comes in the wake of the AltSeason, which is expected to begin in May 2024, the current month. What’s prevailing at the moment signals that altcoin season has already begun. Investors and traders are exploring options beyond BTC, despite the dominant token attempting to recover from the recent low of around $57,000. A jump to $73,000 is imminent for Bitcoin.

On the other hand, ADA is looking to test an early resistance at $0.52 once more. The next areas of interest for Cardano have been drawn at the 23.6% Fib extension level and the $0.32 HTF level. The downward trend could come to a halt. In fact, it is correct to assume that the downward trend has halted, with buyers closely monitoring the sentiments for a potential bull run.

As of April 18, 2024, Open Interest was down from $317 million to $157 million, having last remained stagnant at $161.25 million. April showcased a downward trend in demand in the spot market. There is selling pressure, with analysts hinting that the indicator must move sideways to signal its end.

ADA’s performance over the last seven days has been less than satisfactory. In that time period, the token shed 4.79% of its weight, building on a loss of 23.14% in the last 30 days. Cardano has retained a spot in the list of the top ten cryptocurrencies worldwide in terms of market cap, currently at $16.13 billion.