💵💵💵 Cardano Price ($ADA ) continues to adjust as retail demand weakens
Cardano (ADA) continues to face strong selling pressure at the time recorded on Wednesday, as the bears still hold control over the entire cryptocurrency market. Since the "flash crash" on October 10th, the recovery outlook for this smart contract token has almost stalled at the level of expectations, despite the important support area of $0.3707–$0.3775 still being maintained steadily.
Weak retail demand hinders Cardano's recovery potential
Since the flash crash on October 10th, Cardano has continuously faced declining demand pressure, amid the backdrop of the derivatives market also losing momentum. According to data from CoinGlass, the open interest (OI) of futures contracts is currently only at 692 million USD, a sharp decrease from the 842 million USD recorded on Wednesday, indicating that speculative capital is clearly retreating.
OI — a measure of the nominal value of open Futures positions — once reached an average of 1.52 billion USD on October 10th. Previously, demand from retail investors had peaked at a historic 1.95 billion USD in mid-September, when ADA traded around 0.95 USD, reflecting the high optimism of the market.
Typically, a steady increase in OI is a signal of confidence in a sustainable upward trend, as investors are willing to expand their risk appetite. Conversely, maintaining OI at low levels not only limits Cardano's recovery potential but also increases the risk of prolonging the downward trend in the medium term.
