Cardano dropped 5% in 24 hours after failing to hold the $0.25 zone, even as it remains up 20% over the past week. The rejection triggered an 18.6% correction in five days, and momentum readings now point to a possible retracement toward the $0.19-$0.20 demand zone.
Cardano fell 5% in the past 24 hours after failing to hold above $0.25. ADA is still up 20% over the past week and nearly 30% over the past month. The pullback was not extreme: Open Interest slumped 6.5%, and spot CVD saw a slight slump, pointing to a minor reset in sentiment rather than a reversal.
Why the $0.25 rejection matters
On the daily timeframe, the broader market structure remained bullish. Since June, swing highs have been breached and higher lows have formed, with the latest higher low sitting at $0.177 — the level bulls must defend to keep the upward structure intact.
The $0.25 zone marked the local high from May's sell-off and the same supply zone that trapped Cardano in April. The move into that zone produced an 18.6% correction within five days, signaling a short-term parabolic move followed by heavy profit-taking. The bullish swing structure held, but short-term sentiment might be muted.
A case for further retracement
Short liquidations built up between $0.18 and $0.22 through August. Those positions were wiped out within days as ADA rallied hard into the $0.25 area — a pattern consistent with a short squeeze. Profit-taking in the $0.23-$0.25 zone added to the volatility.
The OBV has moved back near its mid-August lows, signaling heavy sell pressure during the rejection, and momentum on the 4-hour chart has turned bearish and could lead to a deep retracement toward $0.19. Bulls will want to see buying pressure return as ADA approaches the $0.19-$0.20 demand zone.
Flat volumes and muted aggressive buying would instead mean choppy, sideways trading around $0.20 for a few days as bulls and bears fight for control.
Source: AMBCrypto
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