The cryptocurrency market opened the new weekly candle bearish as Bitcoin, Ether, and XRP negatively reacted to the ongoing Middle East crisis.
ADA, the native coin of the Cardano blockchain, is down 2% in the last 24 hours and is trading above $0.27.
The bearish performance comes despite Cardano regaining its spot as the tenth-largest cryptocurrency by market cap.
Retail sentiment for Cardano remains mixed due to intense liquidations in ADA derivatives.
However, positive funding rates indicate that retail traders might be switching to a bullish bias.
The technical outlook for ADA focuses on the crucial support level near $0.2593.
Currently, Cardano’s momentum indicators show a mixed sentiment, with rising fear in the broader cryptocurrency market due to the US and Israel’s attack on Iran.
The tension in the region is affecting global oil supply and shifting macroeconomic conditions.
ADA stays above $0.270 amid mixed market sentiments
Retail traders continue to shy away from the market due to the current conditions.
According to CoinGlass, the ADA futures Open Interest (OI) is down nearly 2% over the last 24 hours to $444 million, indicating a loss in positional buildup and a risk-averse condition.
The decline in OI aligns with capital outflow as ADA recorded liquidations of $1.11 million over the last 24 hours, led by $559,090 in long liquidations and $553,410 in short liquidations.
The capital outflow reflects a nearly equal wipeout of either side.
However, ADA’s funding rate remains at 0.0078% on Monday, suggesting persistent bullish interest among traders.
Technical outlook: Will ADA hit the $0.30 psycholohgical level?
Similar to Bitcoin, Ether, and XRP, ADA’s 4-hour chart is bearish and efficient, indicating that the bears are currently in control of the market.
At press time, ADA is trading at $0.271, after rejecting the 50-period Exponential Moving Average (EMA) at $0.2775.
The declining 50-period and 200-period EMAs keep the broader trend bearish.
The Moving Average Convergence Divergence (MACD) has dropped below the signal line into negative territory on the 4-hour chart, indicating a bearish directional bias.
The Relative Strength Index (RSI) at 47 on the same chart remains close to the midline, suggesting that the bears remain in control.
Currently, ADA is defending its nearest support level, which coincides with the 61.8% Fibonacci retracement level at $0.2695, measured from the February 3 high at $0.3050 to the February 6 low at $0.2289.
This support level limits downside risk to the 50% retracement at $0.2628.
If the bearish trend continues, ADA could retest the $0.2528 support level over the next few hours or days.
However, if the bulls should regain control and ADA pushes above the 50-period EMA at $0.2775, the rally could be extended towards the 200-period EMA at $0.2928.
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