Cardano Sees Slight Pullback After Recent Gains
Cardano (ADA) dropped 1% on Tuesday after rising over 4% the day before. On-chain data shows rising retail demand and less selling pressure. This matches the positive market mood during “Uptober.” Technically, ADA is near the apex of a symmetrical triangle pattern on the daily chart. This keeps the price action uncertain.
Retail Demand Grows as Selling Pressure Drops
Profit-taking by investors has slowed in recent weeks. Santiment data shows the Network Realized Profit/Loss (NRPL) indicator made lower peaks after 51.57 million ADA was sold on September 24. This drop in selling suggests investors prefer to hold or buy more ADA. It signals growing confidence in the token.
The percentage of ADA supply in profit rose to 78.62% from 69.21% on September 24. This increase shows stronger demand, with room to grow before reaching overbought levels above 90%.
Cardano futures also show rising retail interest. CoinGlass data reports that ADA Futures Open Interest (OI) rose over 5% in 24 hours to 1.72 billion. This jump indicates more long positions as traders expect further gains.
Cardano Stuck in Symmetrical Triangle Pattern
At press time, Cardano trades above $0.85, moving sideways within a symmetrical triangle on the daily chart. The price is consolidating between two converging trendlines. Price swings may increase near the triangle’s apex.
A clear close above the trendline or the 50% Fibonacci retracement level at $0.9182 could signal a new uptrend. Resistance may appear at the 61.8% and 78.6% Fibonacci levels, $1.0145 and $1.1517 respectively.
Technical indicators suggest a bullish trend is forming. The MACD is rising after crossing above its signal line last Thursday. The RSI stands at 53, above the midpoint but facing resistance from a descending trendline. A steady RSI rise above 50 could boost bullish momentum.
If ADA falls below $0.80, it would confirm a downside breakout from the triangle. Key supports then are $0.70 and $0.60.
