Cardano price remains under pressure as it struggles to break above a descending trendline near $0.25. The ADA price trades around $0.25 after briefly testing the upper boundary of a downward channel. Earlier this week, the token rebounded toward $0.29 before slipping into consolidation near the $0.25 zone.
Crypto Sell-Off Intensifies After Weak U.S. Jobs Data
The broader cryptocurrency market dropped about 3.56% in 24 hours amid rising global economic concerns. Bitcoin price slipped more than 4% and hovered below the $70,000 mark during the widespread market retreat.
Ethereum also weakened and traded under $2,000 despite showing signs of recovery earlier in the week. The decline occurred after a poor United States jobs report that indicated the economy had lost 92,000 jobs in February.
The oil prices shot up to over 86%, and investors responded with caution as tensions continued to intensify in the Middle East.
These events caused a risk-off thesis that drove most digital assets down concurrently. Despite positive news on retail partnerships in Switzerland, Cardano followed the overall market trend.
The network has recently achieved payment integration in 137 SPAR supermarket locations, which has increased real-world utility.
ADA Derivatives Market Shows Cooling Trend With Falling Open Interest
The open interest of Cardano futures declined by 2% to $436 million on Thursday, continuing a consistent drop that started in mid-January.
The ongoing decline reflects dwindling trader participation in the entire derivatives markets and indicates the dwindling short-term confidence of investors. Trading volume decreased 24%, to $753.93 million daily.
In the meantime, blockchain statistics indicate that large holders sold about 230 million ADA tokens over the last week. That selling pressure, worth more than $63 million, has added further weight to ADA’s short term outlook. Technical indicators are still neutral, but further rejection around the trendline might keep Cardano in the falling range.
Cardano Price Outlook: ADA Risks Further Drop if $0.25 Support Fails
The ADA price plummeted to $0.2576 over the past 24-hours, extending weakness across the Cardano market.
The Cardano price was pushed by the sellers to the important $0.25 support after being rejected several times around the $0.30 resistance region.
The four-hour chart indicates that ADA trades within a sideways formation between the support at $0.25 and resistance at $0.30.
The RSI indicator is around 35, indicating a decreasing ability and approaching oversold. In the meanwhile, ADX is close to 11, which proves that the market does not have a strong directional trend as of now.
Once the support of $0.25 is broken decisively, ADA can move to the next down target at $0.23. However, a rebound from this zone may push the price back toward $0.27 and $0.28 resistance levels as per the full Cardano forecast report.
Source: ADA/USDT 4-hour chart: TradingviewA stronger bullish recovery could open the path toward the major $0.30 resistance area.
Source: https://coingape.com/markets/heres-why-cardano-price-has-not-reclaimed-0-30/
