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Cardano price tests historic support hinting at reversal

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Cardano price tests historic 2022 support as oversold conditions hint at reversal - 1

Cardano price has returned to a major historical support zone near $0.28 as RSI plunges into extreme oversold territory.

Summary

  • $0.28 aligns with 2022 and 2023 historical support
  • RSI in extreme oversold conditions
  • Holding support opens bounce toward range midpoint

Cardano (ADA) is once again testing a long-term demand zone that previously acted as a structural bottom during the 2022 bear market. The same region later served as a foundation for the 2023 cycle low, reinforcing its significance as a high timeframe support area.

Cardano price key technical points

  • Major Support: $0.28 aligns with the historical 2022 and 2023 demand zone.
  • Oversold Signal: RSI in extreme oversold territory.
  • Range Structure: Price remains within a broader high timeframe trading range.
Cardano price tests historic 2022 support as oversold conditions hint at reversal - 1
ADAUSDT (1W) Chart, Source: TradingView

Cardano’s current price action reflects heightened selling pressure, but it is unfolding at a technically important location. The $0.28 region represents both the value area low and the broader range low within the current high timeframe structure. Historically, this level provided a strong base during the 2022 downturn and later marked the 2023 cycle bottom, establishing it as a critical liquidity zone.

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Momentum indicators further strengthen the case for a potential reversal. The Relative Strength Index (RSI) has entered extreme oversold territory, signaling that selling pressure may be approaching exhaustion. While oversold conditions alone do not guarantee an immediate rebound, they often precede periods of relief rallies, particularly when aligned with significant structural support.

From a market structure perspective, Cardano continues to trade within a larger consolidation range rather than a confirmed breakdown trend. As long as price remains above the $0.28 range support, the probability favors continuation within this established structure.

Markets frequently rotate between range extremes before deciding on longer-term direction, and the current setup mirrors previous historical rotations, even as Cardano price remains under pressure despite the Midnight Foundation unveiling major blue-chip companies as node operators.

If support holds and RSI begins to recover through a bullish crossover, the first upside target would likely be the range midpoint, followed by the upper boundary of the trading range. Previous cycles have demonstrated that once oversold momentum unwinds, Cardano can produce sharp relief rallies toward equilibrium zones.

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However, traders should remain cautious. A confirmed breakdown below the historical support would invalidate the bullish reversal thesis and expose deeper downside levels. For now, the technical evidence leans toward a potential bounce scenario, given the confluence of oversold momentum and long-standing demand.

Volume dynamics will be critical in determining the strength of any recovery. A rise in buying participation near $0.28 would confirm accumulation behavior, while continued weak demand could delay reversal attempts.

Overall, Cardano finds itself at a decisive inflection point. The combination of historical support and extreme oversold readings creates conditions favorable for a relief rally, but confirmation depends on whether buyers can defend the range low.

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What to expect in the coming price action

As long as Cardano holds above the $0.28 range support, the probability favors a short-term rebound toward the range midpoint and potentially the range high. A breakdown below this level would shift structure bearish and increase downside risk, but current oversold conditions suggest a bounce remains likely in the near term.

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Crypto World

Fed fallout slows Crypto ETP inflows to $230 million

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Fed fallout slows Crypto ETP inflows to $230 million

Crypto investment products posted another week of net inflows, but the pace slowed as markets reacted to the latest US Federal Reserve meeting. 

Summary

  • Crypto ETPs extended their inflow streak to four weeks, though momentum dropped sharply after FOMC.
  • Bitcoin funds added $219.2 million, while Ether products saw $27.5 million in weekly outflows.
  • US spot Bitcoin ETFs stayed positive, but spot Ether ETFs recorded fresh weekly outflows.

Data from CoinShares showed that digital asset exchange-traded products brought in $230 million last week, extending the positive run to four straight weeks.

CoinShares reported that crypto ETPs recorded $230 million in net inflows during the week. That figure was well below the $1.06 billion posted a week earlier, showing that investor demand cooled as the week progressed.

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James Butterfill, head of research at CoinShares, linked the slowdown to a “hawkish pause” reading of the Federal Open Market Committee meeting. He said the weekly pattern supported that view, as products saw solid inflows early in the week before flows turned lower after the Fed decision.

Bitcoin (BTC) investment products drew the largest share of last week’s inflows. CoinShares data showed that Bitcoin funds added $219.2 million, accounting for nearly all of the week’s net gains across the digital asset product market.

Ether products moved in the opposite direction. They posted $27.5 million in outflows, ending a three-week inflow streak. The reversal came as investors reduced exposure after the Fed meeting and a broader change in risk appetite.

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In addition, Solana continued to stand out among altcoin-focused products. Solana ETPs brought in $17 million last week, marking the seventh straight week of inflows. That pushed the total for the streak to $136 million.

Other digital assets also posted gains. Chainlink products recorded $4.6 million in inflows, while Hyperliquid products added $4.5 million. These numbers showed that interest in selected altcoins remained in place even as broader market momentum slowed.

US spot Bitcoin ETFs stay positive for the week

US spot Bitcoin ETFs contributed a large share of Bitcoin-related inflows. SoSoValue data showed that these funds brought in $95.2 million last week, helping extend their winning run to four consecutive weeks.

The four-week stretch lifted total gains for US spot Bitcoin ETFs to $2.2 billion over that period. Even so, the funds still showed about $400 million in net outflows for the year. US spot Ether ETFs also lost momentum, recording about $60 million in weekly outflows and $599 million in outflows year to date.

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Strategy Buys 1,031 Bitcoin Using MSTR Stock Sales

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Strategy Buys 1,031 Bitcoin Using MSTR Stock Sales

Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin (BTC), bought another 1,031 Bitcoin last week in a much smaller purchase than its previous two weekly buys, funding the acquisition with sales of Class A common stock.

Strategy acquired 1,031 Bitcoin for $76.6 million last week, according to an 8-K filing with the US Securities and Exchange Commission on Monday.

The purchases were made at an average price of $74,326 per coin, below the company’s overall average acquisition price of $75,694. Bitcoin averaged around $70,871 for the week of March 16-22, based on daily closing prices.

The new acquisitions bring Strategy’s holdings to 762,099 BTC, acquired for a total cost of roughly $57.69 billion, the company said.

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Source: SEC

Common stock funded the latest buy

Strategy’s relatively modest purchase follows larger Bitcoin acquisitions recently, including a 22,337 BTC buy reported last Monday and a 17,994 BTC buy a week earlier.

The 22,337 BTC ($1.6 billion) purchase ranks among Strategy’s largest on record and was largely funded through sales of its perpetual preferred equity, Stretch (STRC). The stock generated approximately $1.2 billion, accounting for about 75% of the total purchase.

Related: Strategy records biggest STRC issuance day with estimated 1,420 BTC buy

Unlike the prior week’s funding mix, the latest purchase appears to have been funded through sales of Strategy’s Class A common stock rather than preferred equity.

Source: SEC

Strategy has bought 41,362 Bitcoin for around $2.93 billion in March. With Bitcoin trading at $70,430 at the time of writing, the company is down around 7% on its BTC holdings, now worth around $54 billion, according to data from CoinGecko.

Related: Strategy halts Bitcoin buying via STRC: Will BTC price dip again?

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Strategy’s holdings are roughly 3% below the Bitcoin holdings of BlackRock’s iShares Bitcoin Trust ETF (IBIT), which held about 785,300 BTC on behalf of its clients after the close of trading on Friday.

US spot Bitcoin ETFs collectively held nearly 1.3 million BTC as of March 20, representing roughly 6.1% of the 21 million maximum Bitcoin supply, according to data from WalletPilot.

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