Cardano reached a monthly low of $0.86 before rebounding to $0.9011, forming a symmetrical triangle pattern that hints at consolidation or breakout potential.
Technical indicators like RSI at 46.92 and a bearish MACD suggest neutral momentum, with buyers needing stronger signals for a confirmed reversal.
Open interest increased by 0.88% to $633.46 million, signaling heightened market activity and positioning for a major price move in the near future.
Cardano’s price action has attracted interest since it reached a monthly low of $0.86 before entering $0.9011, up 3.52% at the time of writing. This price action has built up expectations of a breakout or further consolidation to the downside in the coming days.
The daily chart shows a pennant flag formation, making it a consolidation after a month of great performance in November. A major support area exists at $1.1058, and as with most support levels, a move above it could present a strong bullish signal. However, the breakdown of the $0.90 support zone will create an avenue for a retest of the recent low.
Cardano’s technical analysis has both a bearish and bullish perspective. The Relative Strength Index (RSI) is currently at 46.92, showing that neither the bulls nor the bears are in complete charge.
The Moving Average Convergence Divergence (MACD) indicates a mildly bearish signal because while the MACD line is below the signal line, it is also below the zero line. The narrowing histogram bars indicate that market pressure is decreasing; however, evidence of a crossover remains essential.
Open Interest: Increased Activity Signals Larger Moves Ahead
According to Coinglass, Cardano futures’ open interest has increased by 1.54% on average, and there are 706.29M ADA, which is worth $635.97 million. This rise in the volume of open interest indicates increasing market participation, which is usually considered a large price shock.
These leading indicators, together with the fact that open interest has risen with the consolidation phase, can help suggest that traders are gearing up for the next breakout or breakdown.
However, Cardano’s ability to regain its position depends on its next step. If the price rises above $1.1058, it could pave the way for further gains, but $0.90 on the downside may signal further consolidation or downward pressure. The technical indicators and open interest point to an active market. Therefore, traders should remain careful and wait for confirmation at key levels.
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