Cardano's Price Action Hinges on Defense of Key Support Level

Cardano's recent price action has been marked by a sharp move higher to $0.25, but this was unable to stick as a rally.

The price structure and magnetic zones suggest that the bulls must defend the latest higher low at $0.177 to keep the upward structure intact.

However, with the selling pressure not being extreme and the Open Interest slumping by 6.5%, it's possible that we're seeing a minor reset in market sentiment rather than a major reversal.

The bulls will want to see buying pressure ramp up as Cardano approaches the $0.19-$0.20 demand zone, which could lead to choppy sideways price action for a few days around $0.20.

A short-term retracement phase could send prices below $0.20 in the coming days, but the trend has been favoring the bulls with a 20% rally over the past week and nearly 30% in a month.