With the altcoin market crashing, Cardano remains one of the few players sustaining its crucial support level. After a 10.75% plunge yesterday, the downfall continues by 3.80%, bringing the market price to $0.6610.
With a 24-hour low at $0.63, the ADA price had a potential bounce back from a crucial support level. Will this drive Cardano back to $1?
Will ADA Survive the Bearish Pressure?
Breaking under the 200-day EMA line, Cardano has breached the 61.80% Fibonacci level of $0.6673. However, with the lower price rejection, the Cardano bulls are sustaining dominance over the descending trendline.
Nevertheless, the increased bearish influence is now warning of potential bearish crossovers in the technical indicators. The 50 and 100-day EMA lines are on the verge of attaining a negative alignment.
Furthermore, the MACD and signal lines are merging for a negative crossover. Hence, the technical indicators are projecting a potentially steeper correction.
Key ADA Price Targets
As per the Fibonacci levels, a potential turnaround in the ADA price trend from the local support trendline will likely challenge the 50% Fibonacci level at $0.7746. If the broader market stabilizes, the uptrend could reach the 38.20% level at $0.8819.
However, a bearish closing under the local support trendline will likely put the 78.60% Fibonacci level on the bearish radar. This key Fibonacci level is priced slightly above the $0.50 psychological support at $0.5146.
Beyond this, the next immediate support is at $0.32.
Cardano ETF Filing and A Bullish Reversal?
Adding to the possibility of a bullish reversal, the United States Securities and Exchange Commission (SEC) has acknowledged a Cardano ETF filing. The 19b-4 filing was submitted by NYSE ARCA, a subsidiary of the NYSE Group.
The purpose of the filing is for Grayscale to convert its Cardano Trust Shares into a Cardano ETF. This will be done under the NYSE ARCA Rule 8.201-E, which deals with commodity-based trust shares.
Is Optimism Building Among Traders?
On the derivatives front, the Cardano Open Interest has plunged by 11% to $564.14 million. However, the funding rate has significantly recovered to 0.0093%, after turning negative on February 20 and momentarily dipping again last night.
The long-to-short ratio remains bearish at 0.9384, with long liquidations rising to $7.65 million. Similar to other altcoins, the optimism for Cardano is extremely high among top traders on Binance and OKX.
This is highlighted by the long-to-short ratio, revealing two to three times more bullish open positions at play
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