Cardano (ADA) is currently at a crossroads as it hovers near a familiar support level of $0.239, with the cryptocurrency market seeing significant selling pressure. As ADA extends its bearish trend on higher timeframes, traders and investors are closely watching whether sellers can inflict a breakout below this crucial support.
Just over a week ago, analysis of ADA indicated a struggle for bullish momentum to keep the price above $0.25. Sellers saw a shorting opportunity, leading to a 7% price drop as bulls couldn’t break the $0.25 resistance.
For several months, the $0.239 support level has proven to be a key battleground for buyers. Notably, ADA’s last major rally originated from this very support level back in mid-June. Despite multiple attempts by bears to flip this level, it has held strong against selling pressure.
However, recent price action combined with on-chart indicators suggests that a break below this critical support level may be on the horizon. The Relative Strength Index (RSI) currently sits at 34, edging closer to the oversold zone, signaling substantial selling pressure. Furthermore, the On Balance Volume (OBV) continues its downward trend.
The overall bearish market structure, coupled with these indicators, strongly hints at the potential for further price dips in ADA. The liquidation data contributes to bearish sentiment. Long positions faced significant liquidation pressure, with 97.62% attributed to them. This amounted to $429.37k worth of wrecked buy trades in the past day.
Cardano’s live price stands at $0.251978 , reflecting a market cap of $8.87 billion. The 24-hour trading volume totals $132.34 million. In ADA to USD price updates in real-time, and over the past 24 hours, Cardano has seen a 4.03% increase. It currently boasts a circulating supply of 35.22 billion ADA.
As of the latest data, sellers have taken the upper hand with a 52.07% share of open contracts on the daily timeframe, affirming the short-term bearish bias. It appears increasingly likely that ADA may experience a break below the $0.239 support in the coming days, marking a critical juncture for the cryptocurrency.
Cardano’s ADA finds itself at a pivotal moment as it tests the $0.239 support level, with sellers poised for a potential breakout. Traders and investors should closely monitor the market for further developments as the cryptocurrency navigates these crucial levels.
