Cardano (ADA) Faces Selling Pressure Amid Weak Crypto Market
Cardano (ADA) is trading under pressure on Tuesday. Sellers remain in control across the wider cryptocurrency market. Since the October 10 flash crash, ADA’s recovery has stalled. Support between $0.3707 and $0.3775 is holding for now, but the token has not regained momentum.
Falling Retail Demand Limits Cardano’s Gains
Cardano’s demand has dropped since the October 10 crash. The derivatives market also shows weakness. Data from CoinGlass reveals futures Open Interest (OI) at $692 million, down from $842 million last Wednesday. On October 10, OI reached $1.52 billion. Retail demand peaked mid-September at $1.95 billion when ADA traded near $0.95.
Open Interest shows the total value of outstanding futures contracts. A rising OI means investor confidence in price gains. When OI is low, recovery chances shrink, raising the risk of a longer downtrend.
Technical Outlook: Key Support Holds, But Downtrend Continues
At the time of writing, ADA trades just above support at $0.3707-$0.3775. Sellers remain strong. The 4-hour chart shows the 50 EMA at $0.4108, 100 EMA at $0.4218, and 200 EMA at $0.4530 trending down. These levels indicate bearish outlook.
The Relative Strength Index (RSI) nears oversold levels. This signals strong selling pressure. The MACD indicator shows a sell signal, which may cause investors to reduce their holdings, adding to the pressure.
If ADA breaks below $0.3707, the price could drop toward the October 10 low at $0.2756. A move above the accelerated downtrend line would suggest a trend reversal. For a sustained recovery, ADA needs to hold above the 50 EMA and move past the 100 and 200 EMAs.
