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Cardano Slides Toward 2021 Lows as Bitcoin Breaks $70,000 and Support Frays

Shrinking institutional interest signals weaker conviction at the $0.29 support.

Overview

  • ADA traded between roughly $0.26 and $0.29, extending steep weekly and monthly losses and touching levels not seen since early 2021.
  • Bitcoin’s drop below $70,000 sparked sector-wide selling, with Glassnode flagging one of the largest spikes in forced liquidations in two years.
  • Bearish structure persists as RSI sits near 30 and the January 18 MACD bearish crossover holds, with traders watching $0.27 and then $0.24 as key supports.
  • Derivatives participation has thinned, with Binance futures open interest down to $90.21 million and a long-to-short ratio near 0.95 indicating cautious positioning.
  • Institutional and ETF support has waned, exemplified by Grayscale dropping ADA from a crypto index ETF, while CME is scheduled to launch ADA futures on February 9.