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Cardano Price Faces 45% Downside Risk Amid Open Interest Decline
The cryptocurrency market has witnessed a relief rally from the recent correction trend as Bitcoin holds $90k support. However, this uptick is yet to confirm the continuation of the prevailing uptrend, as most major altcoins, including Cardano price, show a breakdown below key support.
Amid the declining slope in ADA’s future open interest, sellers could drive a prolonged correction trend. By press time, the ADA price trades at $0.92 with an intraday gain of 4.77%. According to Coingecko, the asset’s market cap stands at $32.7 Billion, while the trading volume is at $2.9 Billion.
The Cardano price breakdown from a symmetrical triangle pattern drives its current correction trend. A sharp decline in ADA’s OI and funding rate accentuates a weakening bearish momentum.
The coin price sustainability above 50% Fibonacci retracement level indicates the broader trend remains bullish.
Cardano Price Risks Persist as Open Interest and Funding Rate Decline
According to CoinGlass data, the ADA’s future open interest has witnessed a sharp decline from $1.13 Billion to $701 Million— within a fortnight— registering a 38% loss. This sharp decrease implies reduced trader confidence and diminishing speculative activity in ADA, potentially signaling bearish sentiment or lack of momentum in the market.
ADA Futures Open Interest| CoinGlass
In addition, Cardano’s OI-Weighted Funding Rate has dropped significantly to 0.009. While still in positive territory, this low value indicates reduced bullish sentiment and a lack of strong upward momentum in the market. It reflects a cautious approach among traders, with limited expectations for a major price rally in the short term.
ADA OI-Weighted Funding Rate | CoinGlass
Source: www.cryptonewsz.com
