Cardano (ADA) fell sharply alongside a struggling broader cryptocurrency market, dropping 6% to $0.267 on February 2 before a slight recovery. Data shows elevated Open Interest was driven by bearish positioning, not bullish sentiment, despite whales increasing their spot purchases. The token’s immediate future hinges on holding a key support level near $0.267 to avoid further declines.
The broader crypto market faced significant pressure as Bitcoin dropped to the $75,000 level. Cardano joined the decline, falling 6% in 24 hours on February 2 to reach $0.267 before bouncing back to $0.28.
This drop below $0.30 marked a critical point for traders. The Relative Strength Index fell below 30, a level that had previously marked bottoms for ADA.
Open Interest for Cardano remained elevated throughout its price decline, reaching $840 million by mid-January. This increase did not reflect bullish sentiment but rather bears positioning for further downside.
Whale orders on Cardano surged with each price dip, according to CryptoQuant data. Major players aggressively bought after the price fell below $0.80 while retail traders hesitated.
Cardano’s future now relies on holding the $0.267 support level, which was key in 2024. A strong rebound could target resistance between $0.32 and $0.358.
Failure to maintain this support could lead to a drop toward $0.13, a worst-case scenario for holders. This would likely depend on continued weakness in Bitcoin’s price.
