Cardano (ADA) Price Collapses as Key Metrics Decline, New Partnerships May Boost the Token's Value

Cardano (ADA), the ninth-ranked cryptocurrency by market capitalization, has collapsed as some of its key metrics declined.

Cardano (ADA), the ninth-ranked cryptocurrency by market capitalization, has collapsed as some of its key metrics declined. Notably, ADA’s price and volume dropped in the last 24 hours, triggering concerns in the community.

Cardano (ADA) Price: Bearish Momentum Follows Rejection at $0.85

According to market data, ADA price lost 4.55% of its value and trades at $0.7623 at press time. Similarly, trading volume went down by 13.04% to $1.15 billion.

Many market participants expected the coin to clear its resistance and rally to $0.90 as it briefly breached $0.85.

However, Cardano faced rejection at this price mark, slipping to its current level, showing that market volatility is impacting the asset.

This development cancels out ADA’s strong upward trend in the crypto market. The loss of ground already gained has sparked concerns of a possible retracement.

The crypto has been registering a bullish momentum, with ADA jumping by over 15% in seven days, and whales snapped up around 40 million ADA.

But, volatility kicked in, and the significant drop in trading volume could exert more bearish pressure on the asset.

Such a development might see ADA slip through the $0.70 support level and crash to between $0.54 and $0.63 in the short term.

Despite this outlook, some optimists believe the current situation shows that ADA is experiencing a correction due to the general crypto trend.

They noted that Cardano is not the only altcoin losing value; Ethereum (ETH) has also seen its fair share of decline due to market volatility.

Bitcoin (BTC), the leading digital asset, has also pulled back due to broader financial market dynamics.

Cardano Price’s Futures Market Reflecting Weak Sentiment

Cardano’s trading volume is not looking good. The price performance has not inspired investors to commit funds to the coin.

Traders appear to have pulled back from Cardano and are unwilling to invest until things improve.

According to CoinGlass data, ADA’s Open Interest declined by 8.95% in the last 24 hours, signaling investors are not keen on entering the ADA futures market.

As of press time, traders have only committed 1.17 billion ADA, which is valued at $902.10 million.

For clarity, Open Interest denotes the number of futures contracts that investors opened on ADA in fiat currency.

The data suggests that, with less than a billion dollars committed to Cardano, holders are not optimistic about the asset’s outlook.

The traders who did commit their funds to ADA did so mainly through Bitget and Binance, with 21.6% and 21.22%, respectively. In fiat terms, this amounts to $194.86 million and $191.45 million, respectively.

On the two other exchanges, Gate.io and Bybit, traders registered $134.02 million and $120.67 million as funds invested in Cardano’s futures market.

Can Latest Cardano Partnerships Boost ADA’s Value?

Despite the collapse of the current metrics, the Cardano community remains bullish. They expect recent collaborations to impact the market.

One such collaboration is the new partnership deal between Input Output Global, one of the Cardano founding entities, and Brave, a privacy-focused browser.

The ecosystem anticipates possible upward price movement as the benefits of this linkup begin to accrue.

The current ADA price and technical indicators do not suggest the asset is overbought despite the general drawdown.

In a bullish scenario, ADA price could reclaim the $1 price level and even surge to test the $2.50 level if the ecosystem triggers new buying momentum.