Cardano (ADA), Futures Evaporate by 33%...0.21 Dollar Breakthrough Still Possible

▲ Cardano (ADA)/ChatGPT generated image

Cardano (ADA), whose futures trading volume plummeted by 33%, is facing a test of defending the $0.18 mark. Although network activity has contracted, a double-bottom pattern leaves open the possibility of a rebound to $0.21.

According to Coingape on August 6 (local time), Cardano's futures trading volume, as compiled by CoinGlass, decreased from $884 million on August 4 to $591 million on August 6. Open interest also dropped by 5.8% in one day, recording $480 million. Funding rates turned negative, indicating that investors betting on a decline were paying higher costs to maintain their positions.

Internal blockchain activity also weakened. According to DeFiLlama, Cardano's Total Value Locked (TVL) decreased to 358 million ADA, marking its lowest level since March 2023. Although an upgrade to increase Cardano's network processing speed by up to 60 times is approaching, decentralized exchange (DEX) trading volume halved from $2.93 million on August 2 to $1.46 million on August 6.

On the price chart, a double-bottom pattern is forming. Cardano rose 17% from the $0.154 support level to the $0.18 resistance level. Analysis suggests that if it breaks past $0.18 and repeats the same upward movement, it could reach $0.21. The Relative Strength Index (RSI) was 67, indicating a buying advantage, and the Moving Average Convergence Divergence (MACD) also rose in positive territory.

The baseline for a rebound scenario is $0.18. If Cardano forms a closing price below $0.18, the double-bottom pattern will be invalidated. Coingape analyzed that if the daily closing price remains below this level for three consecutive days, selling pressure could intensify.

[Key Article Summary]

-Cardano's futures trading volume decreased by 33% from $884 million to $591 million.

-Total Value Locked (TVL) decreased to 358 million ADA, recording its lowest level since March 2023.

-If $0.18 is held, a rebound to $0.21 remains possible, but if it breaks downwards, the double-bottom pattern becomes invalid.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*