Cardano: Range extension below $0.3 on the cards?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA’s lower and higher timeframe charts were bearish.
- Long positions were wrecked; funding rates were negative.
The resilience seen within the Cardano [ADA] ecosystem is yet to boost ADA’s price outlook. It registered an impressive adoption and network growth rate as transactions hit 69 million. But the token’s price remained below $0.3. In fact, it even surrendered gains made between 10-13 June.
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In the same period, Bitcoin [BTC] reclaimed the $26k price zone but faltered at the $26.6k level at the time of writing. A weak BTC could further undermine strong recovery chances for ADA.
A sideway structure in the making?
The strong rebound from $0.220 on 10 June saw bulls extend gains up to 13 June but didn’t cross the $0.3 price level. Interestingly, the $0.3 level aligns with the 50% Fib level, making it a more crucial roadblock if bulls were to gain an edge and reverse Q2 losses.
In the meantime, the RSI (Relative Strength Index) retreated from the oversold zone but was still within lower ranges, signalling weak buying pressure. But the Accumulation/Distribution metric moved sideways after a slight uptick – pointing to indecision between buyers and sellers.
So, a range formation between $0.247 – $0.3 could be on the cards, given the indecision among buyers and sellers.
But a bearish breakout from the range could ease at $0.220 or $0.182, especially if BTC retests the $24k.
Longs discouraged; funding rates were negative
How much are 1,10,100 ADAs worth today?
Over $110k worth of long positions have been liquidated at press time on the 12-hour timeframe. Conversely, fewer $2k short-positions suffered wreckage in the same duration, pointing to a bearish inclination in the futures market.
However, the negative funding rates witnessed after ADA fell below $0.3 on 10 June have eased. But it is worth noting that the metric wasn’t positive at the time of writing, reinforcing a likely neutral position/range formation scenario.