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Cardano is among the altcoins to pare recent gains as Bitcoin’s hope of getting to $70,000 suffers downside pressure.
With BTC slipping to under $67,000 on Wednesday, major altcoins gave up key gains to trade near support levels.
ADA price showed this outlook on Oct. 23, helping to push the global crypto market capitalization down by 2% to $2.4 trillion.
Bitcoin sees negative action
As the US election nears, one of the key market trends in focus is the crypto performance of major coins.
BTC showed this glimpse with a surge to above $69k this past week. However, the flagship cryptocurrency slipped from highs of $69,230 on Oct. 21 to touch lows of $66,180 two days later.
The downturn wiped the gains seen over the past week, pushing Bitcoin price negative over the weekly time frame.
In this case, continuation could allow bears to target lows seen in mid-October when prices came close to hitting the $65k level.
A negative flow for US spot Bitcoin ETFs, which recorded net outflows for the first time after a seven-day streak of net inflows suggests a flip in investor sentiment.
Stablecoin volumes not spiking as expected also add to the slowdown, with potential profit-taking deals likely to impact altcoins to recently outpace peers in the market.
However, traders are looking at the dips as buy opportunities as the market remains overall bullish. Crypto analyst Cold Blooded Shiller summed up his outlook on this via the chart below shared on X.
GM $BTC stopping just shy of the $66k sweep but taking out the lows of the last couple of days. Very healthy and very productive price action for bulls through here. Realistically this chart remains bullish regardless of where we trade from here, the only plan I’d like to see…
Cardano price outlook
The futures open interest for Cardano (ADA) is up 2.4% in the past 24 hours.
With over $249 million in OI for the 12th-ranked cryptocurrency by market cap, key developments including partnerships could be crucial upward catalysts.
According to Coinglass data, futures open interest in ADA has risen from $152 million in mid-August, which is when Cardano’s price hit the local bottom of $0.28.
Notably, an uptick in OI shows interest in Cardano from traders.
A double-top pattern in July saw ADA crash from $0.43 to $0.28 as the crypto market bled in early August.
In the past three months, bears have also stopped bulls above $0.41 twice.
However, the past month’s action suggests an ascending triangle pattern formation. If market conditions align for a breakout, ADA could reclaim recent supply zones as key support areas.
Cardano ADA/USD price chart. Source: TradingViewNonetheless, the Relative Strength Index (RSI) line is at the 50 mark suggesting potential bearish continuation. Also noteworthy is the Moving Average Convergence Divergence (MACD) indicator.
While signaling a potential bullish strengthening with the crossover, the buy-side pressure is lacking.
Flipping this will be key to bulls. Otherwise, Cardano’s price could retest support near $0.31.
ADA traded around $0.35 at the time of writing.
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