Assessing Cardano’s chances of a bounce to $0.3

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The Open Interest of Cardano continued to slump, showing bearish sentiment.
• ADA bulls could attempt to push prices higher after the retest of a nearby bullish order block.

Bitcoin [BTC] dominance has trended higher since 15 June. Since then, BTC has surged from $25k to touch $31k before a minor dip back to $30k. The rise in BTC Dominance meant the altcoin market was unable to keep pace with BTC bulls.

Read Cardano’s [ADA] Price Prediction 2023-24

Since 15 June, Cardano [ADA] rallied from $0.25 to $0.3 but has retraced most of those gains in the past five days. While the short-term bias was bearish, ADA bulls have some reason to be optimistic about another move back to $0.3.

Cardano retraces almost all the gains of the past two weeks; will this result in a range?

Source: ADA/USDT on TradingView

At the time of writing, ADA was on the verge of dipping beneath the $0.272 level. This level had acted as resistance two weeks ago, but buyers were hopeful that they could halt the bears at that level upon a retest. In that scenario, prices would likely climb back toward $0.3 and follow the range formation.

They had no such luck and the price dipped to $0.26. This represented a bullish order block from mid-June, and ADA bulls had their fingers crossed for a positive reaction from the price. The RSI showed bearish momentum. The DMI showed a strong downtrend was beginning, with the ADX (yellow) and -DI (red) both above 25.

Depressed Open Interest pointed toward disinterested bidders

Source: Coinalyze

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Since 25 June, the spot CVD behind Cardano has been falling. This showed a rise in selling pressure. This was accompanied by a fall in Open Interest alongside dropping prices since 27 June.

Taken together, the Coinalyze data showed that the sentiment was bearish in the short-term. The findings supported a move beneath $0.26, and a drop below the $0.254 mark would reinforce the bearish trend.