ADA's Rocky Ride: Support Levels and Open Interest Under Scrutiny

ADA navigates critical support amid fluctuating open interest. Is a bullish recovery on the horizon, or will key levels buckle under pressure?

ADA's Rocky Ride: Support Levels and Open Interest Under Scrutiny

Cardano (ADA) has been on a bit of a rollercoaster lately, and understanding where it's headed requires a close look at its support levels and open interest. Let's dive into what's been happening and what it might mean for ADA holders.

ADA's Price Dip and Key Support at $0.75

On July 23, 2025, ADA took a tumble, dropping over 10% to around $0.82. This wasn't just a random blip; it reflected traders locking in profits after ADA briefly hit $0.93, a high not seen in months. But the real question is: can ADA hold its ground?

The $0.75 level is now critical. Technically speaking, it aligns with the 20-day Keltner Channel baseline and a previously broken resistance level. Losing this support could trigger a cascade of long liquidations, potentially sending ADA even lower. Think of it as a crucial line in the sand for the bulls.

Open Interest: A Sign of Fading Confidence?

Data from Coinglass showed a nearly 10% drop in ADA's open interest, landing at $1.53 billion. This decrease, coupled with a massive drop in options volume, suggests traders were closing long positions rather than initiating new short ones. Basically, some investors were taking their chips off the table, perhaps waiting to see what happens next.

The Bullish vs. Bearish Scenario

If ADA manages to hold above $0.75 and trading volume stabilizes, we might see a resurgence of bullish momentum. The fact that ADA remains above its 50-day moving average and the daily RSI is cooling off from overbought territory provides some hope. A successful defense of this level could pave the way for another run toward the $1.00 mark.

However, failure to hold support could lead to a slide toward $0.70. So, keep a close eye on that $0.75 level; it's the battleground for ADA's next move.

What About the Broader Market?

It's also worth noting that ADA isn't the only crypto experiencing volatility. Even Shiba Inu (SHIB) saw a decrease in open interest, reflecting broader uncertainty in the crypto market. External factors, like potential tariff changes, can also inject volatility, as seen with Dogecoin's recent pullback following President Trump's warning about tariffs.

Final Thoughts: Navigating the Choppy Waters

ADA's journey is a mix of technical levels, market sentiment, and external pressures. While some see renewed momentum with potential integrations like Apple Pay, others suggest new projects like Nexchain might offer more agility. Either way, watching ADA's dance around that $0.75 support and keeping an eye on open interest will be key to understanding its next act. So buckle up, crypto enthusiasts – it's going to be an interesting ride!