Cardano price is under pressure as sellers dominate the market. The price has reduced by 10.05% and is currently at $0.67.
Notably, the recent decline of Bitcoin price below the $90K level has applied additional bearish pressure on the overall crypto market. The selling pressure persists as the price declined by 5.42% in the intraday and continues to fall.
The chart indicates a failure to push past the 20-day EMA as resistance zone. Cardano price has pulled back from the 50% retracement level of $0.7746 and is aligning with the 38.20% Fibonacci level. If the price fails to hold above it, then the next support level is $0.60 a psychological level.
Source: TradingView
Moreso, Crypto analyst Ali warns that Cardano price is breaking below a parallel channel. He notes that ADA must reclaim $0.67 quickly to avoid further decline. According to his analysis, the price may fall to $0.53 unless a swift market recovery happens.
Source: X
The Derivatives Data Reflects Market Uncertainty
According to Cardano derivatives market data, investors remain indecisive. The markets show reluctance as evidenced by a 0.0045% funding rate decrease.
Furthermore, Open interest has decreased to $544.94 Million, reflecting a 15% reduction. Lower open interest indicates that traders are reducing their positions, reflecting a lack of confidence in price stability.
Source: The Cardano Derivatives
However, some traders still have high expectations on Cardano’s prospects in the market. The long-to-short ratio remains at 0.9216 which still indicates buy signals.
On Binance, the Long to Short ratio has spiked higher at 2.73 indicating that traders have a bullish outlook.
Additionally, increased liquidations have affected the market. This has led to market turbulence and most of the traders pull out their stakes from the market.
However, as levels of liquidation arise, the volatility could continue to be a long-term phenomenon.
Cardano ETF Proposal Sparks Optimism
The SEC acknowledged a 19b-4 filing for a Cardano exchange-traded fund. NYSE Arca, which is a subsidiary of the NYSE Group, filed this proposal.
The filing proposes to obtain SEC permission for trading Grayscale’s Cardano Trust shares under NYSE Arca Rule 8.201-E.
If approved, the ETF could drive adoption among institutional investors which would be beneficial to Cardano.
Higher institutional participation results in increased price and market stability. Investors are now waiting for more updates from the governmental bodies. Such a development could alter the general perception of the market and draw more buyers in.
Will Cardano (ADA) Price Drop to $0.50 or Rebound?
The altcoin price is approaching the critical support zone. If bearish momentum continues, the next support is at the 23.60% Fibonacci level at $0.53. A breakdown from this level could push the Cardano price to $0.50.
However, the market could shift if sentiment improves. The SEC’s acknowledgment of the ETF proposal has created renewed optimism.
If the ETF gains regulatory approval, institutional demand could increase. A rebound within the falling wedge pattern could push Cardano toward the $0.7746 resistance level.
