If sellers hold their ground, these concentrated orders could be a hurdle for Cardano to climb above $0.18, as it is currently trading at $0.176, down 1.59% over the past 24 hours. A sell wall is a big cluster of limit sell orders at a price level that can soak up buying pressure as the market approaches that price.
But just because there are large sell orders does not mean the price will be rejected. If there is enough demand to buy, it might soak up the supply.
The region $0.177-$0.179 is an important area to watch now. How much of the reported sell orders Cardano can absorb will be key in deciding whether buyers can recover momentum or sellers will remain in control below $0.18.
Cardano OI explodes
Cardano’s open interest (OI)—the total value or number of derivatives contracts that have not been settled—has gone up over the past 24 hours, a sign of rising trader participation and new positioning in the $ADA derivatives market.
According to CoinGlass, Cardano's open interest was up 5.42% over the past day to $395.09 million
While on-chain data highlights potential sell walls for Cardano, large buy walls coincidentally reside slightly below where the $ADA price currently trades. Cardano's buying interest could pick up in the range between $0.17 and $0.175, as clusters of buy walls are located at those levels. CoinGlass reports spot net taker selling of $1.27 million for Cardano. In addition, futures taker buys exceeded sells by 3.9%, suggesting buyers are relatively in control.
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