Bad week for Cardano in the middle of a persistent risk aversion. Given this, the ADA whales have gone from accumulate to sell with a correction of its value of 2% last Thursday. Although he open interest has grown steadily in the last month, according to Michael Ebiekutan an FX Street.
Wallets with between 10 and 100 million tokens reduced their collective holdings by 370 million ADA in the last seven days. This group had been buying the dips since mid-October, but their momentum ran out last week.
Notably, selling pressure accelerated on Wednesday, as indicated by a sudden rise in the Consumed Antiquitywhich tracks the movement of older tokens.
This movement also coincided with an increase in 19 million dollars in profit taking. However, most of the ADA selling activity in November has been due to investors losses materialized. ADA has fallen almost a 30% since the beginning of the month.
Cardano derivatives offer a glimmer of hope
In the derivatives market, the Cardano open interest increased a 30%until reaching the 1.64 billion ADA during the last week, thus continuing its recovery, which began a month ago despite the fall in prices.
The relationship between long and short positions on Binance indicates that the rise could be biased towards bullish positions, as the number of accounts and major positions with long positions in ADA exceeds the short ones by 2.8 and 1.7, respectively. However, the financing rate remains moderate in the 0.0077%with negative fluctuations during the last week.
ADA risks falling to $0.30 if it fails to hold in a key support range
ADA has lost a 2% of its value, extending its weekly decline to 20% to thursday
The layer 1 token is testing the key support range between $0.45 and $0.42. If it fails to hold above $0.42, ADA could find support around the psychological level of $0.30.
To the upside, ADA must recover from $0.45 and overcome the resistance of the 20-day Exponential Moving Average (EMA) to retest the psychological level of $0.60.
He Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) They are in oversold territory, indicating strong bearish momentum. However, these oversold conditions on the RSI and Stoch could trigger a short-term reversal.
Cardanoopens Friday’s session higher at $0.4353. The 70 and 200 period moving averages are above the candles of the last forty-five days, RSI is up at 27 points and the MACD lines are below the zero level.
Medium-term support is at $0.42. Meanwhile, Ei indicators appear practically bearish.