Cardano Open Interest Stays Below $500 Million as Traders Stay on Sidelines

Cardano's open interest has remained below $500 million in the last few days. According to CoinGlass data, Cardano open interest was down 2.49% in the last 24 hours to $431.89 million, a drop from the above $500 million figure typically seen.

This comes amid the current uncertainty on the markets that has left market sentiment in the fear zone. The Crypto Fear and Greed Index remains in extreme fear as the crypto market continues to struggle following October's sell-off. The broader crypto market has lost almost $2 trillion in value over the same period, according to data from CoinGecko.

Recent months have seen a turbulent stretch for digital assets marked by continued bouts of volatility and shifting risk appetite. Cardano was impacted, currently trading at multimonth lows.

At the time of writing, $ADA was trading up 1.29% in the last 24 hours to $0.285 and up 13% weekly.

The crypto market saw mixed trading on Wednesday as investors anticipated the Federal Reserve's meeting minutes and key inflation data.

The markets will be keeping an eye out for the FOMC meeting minutes, which will be released at 2:00 p.m. ET, offering insights into policymakers’ decision-making at the Fed’s January meeting.

The Central Bank kept its key interest rates steady in January at a range between 3.5% and 3.75%, in line with traders’ expectations.

Investors are also looking ahead to the release of the personal consumption expenditure price index, the Fed’s preferred inflation gauge, on Friday, which will provide further insights into the state of the economy.

What's next for $ADA price?

The next resistance levels for $ADA lie at $0.34 and $0.57 if the current rise continues.

If the bulls do not give up much ground to the bears, the possibility of a break above $0.30 continues. That suggests Cardano may remain inside the descending channel for some more time. A break and close above the downtrend line signals a potential short-term trend change.

Sellers will have to pull the Cardano price below the support line to extend the downward move toward the next support at $0.20.