Cardano (ADA) price drops 5% with open interest hitting $728 million within 24 hours

Cardano cryptocurrency has faced downward pressure due to significant market activity, resulting in ADA falling below crucial support levels. Over the past 24 hours, Cardano (ADA) recorded open interest of $728 million. This metric, which represents the total number of futures contracts remaining open in the market, declined by 2.69% alongside a 5% drop in ADA’s price. The simultaneous decrease in open interest and price suggests a potential shift in market sentiment.

The price of ADA currently stands at $0.694, reflecting a 4.24% decline in the last 24 hours. Cardano reversed its recent rebound, falling from highs of $0.73 to lows of $0.681 in early Tuesday trading. This downward movement led to a breach of the critical daily SMA 200 support level at $0.70, a key technical indicator closely monitored by traders and analysts.

To initiate a sustained recovery, buyers must push the price above key moving averages. If successful, Cardano could potentially rise to $1.02, where sellers might offer significant resistance. Conversely, sustained downward momentum and remaining below the daily SMA 200 could push the cryptocurrency towards the $0.50 level.

Despite the price pressure, Cardano has seen positive developments on the regulatory front. Hashdex has submitted a request for the inclusion of Cardano and other major altcoins in its Hashdex Nasdaq Crypto Index US ETF. Additionally, Coinbase announced plans to introduce futures contracts for Cardano pending approval from the Commodity Futures Trading Commission. These developments could serve as positive catalysts for ADA in the medium term.

The recent market volatility and ongoing macroeconomic uncertainty have contributed to Cardano’s price performance. Market participants are closely monitoring the Federal Reserve’s upcoming policy meeting for potential decisions that could impact cryptocurrency markets.

Declining open interest paired with falling prices, as seen with ADA, indicates growing bearish sentiment among traders and investors. Analysts are monitoring these developments to assess whether Cardano can recover from its technical weakness or face additional selling pressure.

While short-term challenges persist, potential regulatory advancements and exchange listings could improve Cardano’s outlook. The next few trading sessions will be crucial in determining whether Cardano can find support at current levels or require additional price adjustments before a sustainable recovery can begin.