Cardano Price Prediction – ADA Trades at $0.28, Bears Target $0.22

Highlights:

• Cardano has dropped 2% to $0.28 today, as the crypto market shows mixed sentiment.
• The open interest has slipped as the funding rate flips negative, showing a bearish stance.
• The technical outlook shows mixed signals, as ADA trades below key moving averages.

The Cardano price (ADA) is currently trading at $0.28 on Monday, marking a 2% drop in the past 24 hours. Retail interest in ADA is not high at the beginning of this week, based on decreasing Open Interest and negative funding rates. Cardano is technically at a crossroads that is prone to momentum falling into neutral gears as the crypto market shows mixed signals.

According to the CoinGlass data, the ADA futures Open Interest (OI) has decreased to $437.01 million. This marks an 8.92% slip during the last 24 hours, and this represents a significant outflow of ADA derivatives, most likely caused by the liquidation waves.

Long liquidations were also recorded at $847,056, which is more than short liquidations of $116,097. This indicates a strong wipeout of the bullish positions. This has brought the long-to-short ratio lower than 1 to $0.92, implying that there are more active short positions in the ADA derivatives. 

Also, the funding rate of -0.0099% is a bearish sign that traders have exhibited. Otherwise, the strong downward pressure in the derivatives market may push the Cardano price to levels that are way below the price of the spot market.

Cardano Price at Crossroads Amid Mixed Technical Indicators

In the current price chart, Cardano is swinging within a small area, finishing slightly below the resistance point at $0.34, and near the support point at $0.25. Recent price movements have indicated high levels of resistance that have held back several attempts to move up. If sellers push the price below the $0.25 level, Cardano’s price could quickly test the $0.22 low.

Momentum indicators point to a neutral level. The Relative Strength Index (RSI) stands at 44.70 with weak buying power and no indication of a rally. Another technical signal, which is evident in price action, is a falling channel pattern, which tends to include declines in the event of a broken support. 

The critical zone that investors need to observe is at $0.25. Bearing in mind that buyers are able to retain this level, the ADA price may seek another push to resistance and may revisit levels of $0.34. In case this support is not reached, the next significant target is the area of $0.22, and the sellers might gain control soon. Meanwhile, Ali Martinez, a well-known crypto analyst, has predicted that $0.244 is the most important support level for ADA.

https://twitter.com/alicharts/status/2023170205413982494?s=20

At the current moment, Cardano’s price is fluctuating around major resistance, and sellers have the upper hand. Should it hold above $0.25, a recovery might be on its way. On the other hand, if the support breaks, the nearest point on the charts might be the $0.22.