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Cardano was poised for a breakout above the range highs of $1.49 just over 48 hours earlier. Bitcoin was unable to break through $64,000, and its rejection and resulting selling pressure were felt in the industry, with the past 24 hours seeing increased uncertainty. However, at the time of publishing, ADA had broken its grip on the $1.4-mark that it had jumped off of the day before, with the cryptocurrency descending into the $1.35-support level.
Cardano 1-hour chart
The short-term forecast for ADA was bearish on the maps. The next few hours, as well as the protection of the $1.35 mark, were critical developments to track. Funding rates for ADA were extremely favourable, indicating that the long trade remains overcrowded.
In the last few hours, there has also been an increase in Open Interest behind BTC, which validates the king crypto’s bearishness. However, for ADA, both the OI and price have decreased in the last 24 hours, implying that the recent decline was a result of deleveraging. This could cause ADA to rise if consumer preference moves in their favour.
Short-term technical indicators point to a bearish outlook for ADA in the coming hours. The RSI had easily slipped past neutral 50 and was heading into oversold territory. Over the last few hours, the OBV has also seen lower highs and lower lows, confirming that trading volume was to blame for the decline.
As ADA broke through the $1.48 mark, there was a surge in trading demand, bringing the price down down to $1.4. The sudden decline in the OBV mirrored this.
Bitcoin’s defence of $60,000 would be critical in the coming hours for the altcoin sector. If the price falls below $58.2k, selling will pick up, and the profits of the previous week may be retraced.