Cardano's Bearish Signals Flash as Gains Fuel Concerns
Cardano's native cryptocurrency has experienced significant gains in September, with a price increase of 23% over the past month. The current trading price is around $0.25.
Despite the optimism from analysts who expect further gains in October, several bearish signals are flashing. One such signal comes from demand for ADA in the futures market, which has cooled down with a 9% decline in open interest over the last week.
X user Ali Martinez outlined three major bearish factors: decreasing leveraged exposure, whale activity offloading 90 million tokens worth around $22.5 million since September 20, and a sell signal from the Tom DeMark Sequential indicator on ADA's daily chart on September 26.
The market observer believes that if the current support level of $0.24 is lost, it could lead to further drops to $0.21. However, holding this lower boundary may present an opportunity for buying, targeting the channel top near $0.28.
Historically, Cardano has underperformed during the month of October, finishing in the red six times over the past nine years.