Analysis
Cardano gives buyers a chance to go long, but there are worrying signs
The Open Interest has remained near the $170 million mark in October, showing wary speculators.
- The technical indicators and futures market data outlined Cardano’s conviction levels.
- The lack of significant capital inflows weakened any bullish bias for the coming days.
Cardano [ADA] was back at the midpoint of the two-month range after the attempted breakout earlier this month came to a sudden halt. This reversal was caused by Bitcoin [BTC] ‘s momentum stalling at the $66.5k level.
Since then, BTC has fallen to and defended the $60k zone. Meanwhile, ADA maintained its bullish structure on the daily timeframe, coming very close to a bearish flip. Here’s what traders and investors can expect from the altcoin.
Undecided market sentiment could move prices either way
Source: ADA/USDT on TradingView
Cardano was back at the mid-range level at $0.325 after the rejection from the $0.415 area. AMBCrypto examined the higher timeframe trend and found that ADA’s trend was bearish. The recent months’ consolidation below $0.4 could mark the end of that downtrend.
Yet, the failed breakout past $0.41 showed that the market isn’t ready for a sizeable rally. Therefore, the drop to the mid-range level presents an attractive buying opportunity for investors with long time horizons.
Swing traders should exercise more caution. The Awesome Oscillator showed neutral momentum, while the CMF showed no significant capital flows to or from the ADA market.
This meant that the next trend could go either way. Given the daily structure and the importance of $0.342, the chances of a move upward were slightly more likely in the coming days.
Speculators opt to stay away from trading Cardano
Source: Coinalyze
The price action of Cardano in the past ten days has been volatile. Since the 27th of September, a more bearish short-term outlook has been in place.
Read Cardano’s [ADA] Price Prediction 2024-25
The spot CVD reflected this trend and has been in a steady downtrend, showing selling pressure.
The Open Interest has remained near the $170 million mark in October. Speculators are wary of ADA’s indecision after the rejection at $0.416.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
