Is This the Comeback No One Saw Coming?
Cardano tests the barrier of $0.69 after a technical indicator signals a buy.
A small increase in the Open Interest of derivatives of $831 million reflects the interest of ADA traders.
After reaching a peak of $415 million on May 11, Cardano's DeFi TVL continues to decline.
After testing the support at $0.65, Cardano (ADA) rose to $0.69 on Tuesday. The small increase comes amid the consolidation of the cryptocurrency market and global macroeconomic pressures, mainly fueled by concerns about tariffs in the U.S.
Cardano is bullish.
ADA fell below $0.65 during last week's cryptocurrency market sell-off before recovering on Monday. After a court ruling against President Donald Trump's tariffs, uncertainty about tariffs in the U.S. caused a chain of losses. A court of appeals temporarily suspended the tariff ban, but uncertainty remains.
The rebound of Cardano from $0.65 convinced traders that it could reach $1.00, a territory rich in supplies. The Open Interest (OI) in the futures market increased by 2.2% to $831 million in the last 24 hours, indicating greater interest in ADA, especially with trading activity exceeding $1 billion.
A long-short ratio of 2.83 indicates a bullish inclination among Binance futures traders. The liquidation of $198,000 in long positions in the last 24 hours, compared to $394,000 in shorts, suggests a short squeeze that could drive up the price of ADA.
The bullish structure of Cardano is supported by a buy signal from SuperTrend. This trend-following tool measures market volatility using ATR. ADA's price above the SuperTrend line, which changes from red to green, indicates a buy signal. The dynamic support and resistance level of this indicator supports Cardano's positive outlook.
The decline in DeFi TVL may hinder Cardano's rebound.
Despite the positive outlook, traders should be cautious as the Moving Average Convergence Divergence (MACD) indicator showed a sell warning on May 17. This suggests selling ADA when the blue MACD line falls below the red signal line.#MyCOSTrade #BinanceAlphaAlert $BNB $ADA
