Cardano (ADA) witnessed high market activity, with open interest reaching $728 million in the past 24 hours, according to CoinGlass data. This represents a 2.69% decline within the same period, aligning with a 5% drop in ADA’s price.
Market Sentiment Turns Bearish
Open interest in cryptocurrency futures measures the total number of unsettled contracts in the market. A decline in this metric often signals weakening investor confidence. As ADA’s price fell, market participants interpreted the drop as a sign of increasing bearish sentiment.
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Broader crypto market volatility and macroeconomic uncertainty have also contributed to ADA’s downward movement. Investors remain cautious as they evaluate external economic factors impacting digital assets.
Key Support and Resistance Levels in Focus
At the time of writing, ADA had declined 4.24% in the last 24 hours, trading at $0.694. Traders closely monitored price movements ahead of the Federal Reserve’s policy meeting on March 18-19, speculating on potential interest rate decisions.
ADA/USD Daily Chart, Courtesy: TradingView
Cardano reversed its earlier rebound, which had pushed the price to $0.73, before slipping to $0.681 during early Tuesday trading. The decline placed ADA below the daily 200-day simple moving average (SMA) at $0.70, where it currently hovers.
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For ADA to regain bullish momentum, buyers must push the price above key moving averages. If they succeed, ADA could rally toward $1.02, where strong resistance may emerge. However, if the price continues to drop below the 200-day SMA, a further decline to $0.50 becomes more likely.
Institutional Interest in Cardano Grows
Despite short-term price weakness, institutional interest in Cardano has increased. On Monday, Hashdex filed an amendment with the U.S. Securities and Exchange Commission (SEC) to include ADA and other altcoins in its Hashdex Nasdaq Crypto Index US ETF (NCIQ).
Additionally, Coinbase announced plans to introduce futures contracts for Cardano, pending approval from the Commodity Futures Trading Commission (CFTC). These developments highlight growing institutional confidence in ADA’s long-term potential.
