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Cardano (ADA) has experienced significant market activity, with $728 million in open interest within the past 24 hours, according to data from CoinGlass.
Cryptocurrency futures open interest refers to the total number of futures contracts that have not been closed on the market. This figure represents a drop of 2.69% in the last 24 hours, corresponding with a 5% drop in ADA price in the same time frame.
Open interest can provide insight into the sentiment of market participants toward the cryptocurrency, while falling open interest may indicate growing bearish sentiment.
This comes as broader crypto market volatility and macroeconomic uncertainty continue to impact ADA's price.
In the meantime, analysts are watching key support and resistance levels to determine whether ADA can recover or face further bearish pressure.
At the time of writing, ADA was down 4.24% in the last 24 hours to $0.694 as traders considered the possibility of interest rates being unchanged following the Federal Reserve's policy meeting on March 18 to 19.
Cardano drops below key support
Cardano reversed yesterday's rebound, which reached highs of $0.73 and fell to lows of $0.681 in early Tuesday trading. Cardano, in the process, fell below the daily SMA 200 at $0.70, where it currently trades.
Buyers will need to push the price above the moving averages to begin a sustained comeback. ADA could rise to $1.02, where the bears may again make a robust defense.
In contrast to this assumption, if the ADA price continues to fall and remains below the daily SMA 200, it increases the likelihood of a drop to $0.50.
In positive news for Cardano, Hasdex has asked the Securities and Exchange Commission to approve an amendment that would allow the digital asset manager to include Cardano and other major altcoins in its Hashdex Nasdaq Crypto Index US ETF (NCIQ), according to a filing with the regulator on Monday. Over the weekend, Coinbase also announced it would be introducing futures contracts for Cardano, subject to CFTC approval.