Cardano (ADA) Bulls Seek to Break Out of Consolidation Phase
Cardano (ADA) has experienced a 12% price increase, reaching $0.26 on Tuesday. However, speculative traders have been withdrawing their capital from ADA Futures markets. Open Interest for ADA has decreased by $5.6 million since the price rally began on September 12. This suggests that existing long position holders are taking profits and closing out their positions.
Spot Traders Await Higher Prices
While Cardano has attracted significant demand and buy orders have exceeded sell orders, sellers appear to be waiting for higher prices before selling. A chart depicting exchange order books shows that 67% of existing sell orders are priced at $0.29 and above. This indicates that sellers are holding out for better offers from buyers.
Consolidation Expected Before Breakout
The current spot market demand levels suggest that Cardano’s price will likely remain above the $0.25 range in the coming days. However, reclaiming the $0.30 territory may prove challenging for the bulls unless they significantly raise their stakes. If they can push past this resistance level, ADA price could make another attempt at reaching $0.30 for the first time since August 1.
Hot Take: ADA Price Faces Resistance at $0.30
Despite recent gains, Cardano’s price faces resistance at the $0.30 level due to a decline in Open Interest and sellers holding out for higher prices. While consolidation is expected in the short term, if buyers can overcome this resistance, ADA may have a chance to break out and reach new highs. However, if market uncertainty intensifies, there is a possibility of a major downswing towards $0.20.
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