Cardano's ADA Faces Downside Pressure as Buyers Remain Cautious

Cardano's ADA has been trading within a narrow range, with consolidation occurring near the lower bounds of this range. The reluctance of buyers to support ADA near the $0.7 level indicates that bullish momentum is weak, and a recovery is not imminent. Recent whale accumulation did not translate into a positive price reaction, and the lackluster performance of Bitcoin has not helped alleviate the selling pressure on ADA.

The price action of ADA has been characterized by a strong surge from the range lows to the highs in early March, forming a higher low at $0.67 ten days ago. However, the swing structure remains bearish as the $1.13 level has not been breached. This highlights the importance of the current range, with ADA trading near the range lows presenting a potential buying opportunity. Despite this, ADA has shown little momentum, with the MACD and signal lines closely interwoven and the OBV failing to climb higher, indicating a lack of accumulation.

Data from Coinalyze shows that the Open Interest has remained around $400m-$450m over the past three weeks, suggesting that speculators are preferring to remain sidelined due to a lack of bullish conviction. This lack of faith is further illustrated by the falling spot CVD, which shows strong selling pressure in the first half of the month. Over the past ten days, the sell volume has dwindled but remained stronger than the buying volume, indicating that Cardano might struggle to recover and move beyond the $0.8 resistance.

Unless Bitcoin can climb higher and shift market sentiment, ADA might be on course to fall below the range lows. If Cardano fails to hold above the $0.7 support level, the next potential downside targets are $0.647 and $0.579. These levels will be crucial for ADA's price trajectory, as a failure to hold above them could signal further declines. The current market conditions suggest that ADA may face further downside pressure in the near term, as investors remain cautious about the broader cryptocurrency market.