- Cardano (ADA) trades around $0.160 with weak momentum and buying momentum.
- The necessary support at $0.157 is important, with $0.13 a risk if broken.
- Oversold and Leios testnet signals may trigger a temporary reversal in the near future.
Cardano (ADA) continues to trade under pressure, holding close to its recent lows while both the real estate and derivatives markets show caution.
The token is worth $0.1607, down 3.2% in the last 24 hours.
In the long term, the indicator has dropped by 6.1% in the last 7 days, dropped by 35.6% in the last month, and dropped by 73.2% in the last year, showing constant pressure in many ways.
Daily trading activity, however, remains active, with $368.8 million in 24-hour volume.
The placement of weak items and fading participation
In the emerging market, the ratio of long to short stands at 0.96, indicating less positions than long positions among traders.
Open interest in futures is around $348 million, continuing its sharp decline since mid-May.
A decrease in open interest indicates a lower speculative interest rate and indicates that traders are reducing exposure rather than building interest positions on both sides.
The chain’s indicators also show the problems of market behavior.
The Network Realized Profit/Loss (NPL) metric has fallen significantly, indicating that a large portion of current owners have been realizing losses rather than gains.
This type of activity is often associated with lower levels, where the weaker ones leave the area due to price pressures.
Technical analysis of Cardano
Cardano remains below its major moving averages for a long time, proving that the upside is still there.
The price of the altcoin is trading below the 50-day, 100-day, and 200-day (EMA), which strengthens the resistance while trying to recover.
The RSI (14) on the daily chart is around 31, showing bearish control is still present, although it is no longer in the oversold area.
Cardano’s value proposition is moving towards the Leios testnet support
The most important event in the long-term view is expected Leos scaling upgrade testnet around June 23.
This testnet upgrade is being looked at with interest as a catalyst for reworking within the Cardano ecosystem.
The stock market currently remains weak, but conditions are showing the first signs of suppression.
Long-term oversold readings, combined with the slow sell-off, suggest that the price is approaching a decision rather than continuing its downward trend without interruption.
If the bulls enter around the $0.157 support zone, a temporary retracement to $0.172 remains the primary path to recovery.
However, a failure to maintain this level could result in the forecast going as low as $0.148 and possibly $0.13 on the proposal, depending on market conditions and how sentiment changes.
In particular, flag breakouts have also been identified in recent technical analysis, patterns that often indicate the continuation of the current downtrend after a consolidation phase.
This increases the weight of the downside risk unless buyers regain strength above the higher resistance levels.
