Cardano (ADA) Price Under Pressure, Rare Buy Signal May Bring Rebound Opportunity

Gate News: On March 23, Cardano (ADA) faced significant downward pressure, dropping over 7% last week. The current trading price is around $0.25, close to a key support level. The escalation of the US-Iran conflict has triggered market tension, with US President Trump threatening to strike Iran’s power grid within 48 hours, and Iran responding with possible attacks on energy and water supply facilities in Gulf neighboring countries. This has led investors to sell off risk assets, including Bitcoin and Cardano.

Derivatives data shows that open interest in Cardano futures has decreased to $388.23 million, with the funding rate turning negative to -0.019%, indicating a dominance of short positions. Technical indicators show ADA trading below the 50-day and 100-day exponential moving averages, RSI at 41, and MACD falling below the signal line. Short-term resistance levels are at $0.27 and $0.30, with support at $0.24 and a major bottom at $0.22. A break below this could extend the downtrend.

However, there are also positive signals. Analyst Ali Martinez identified a rare “Black 9” buy signal on the weekly chart using the TD Sequential indicator on March 21, suggesting selling pressure may be easing. If ADA closes above $0.23, this signal could push the price higher toward $0.32 and $0.37.

The Cardano development team recently released Node 10.7.0, laying the groundwork for the next protocol upgrade and optimizing the speed of Plutus smart contract execution. Additionally, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have classified ADA as a “digital commodity,” providing clearer legal guidance for developers in the US market. The Midnight privacy sidechain developed by Input Output Global is expected to go live on the mainnet this week, potentially bringing new growth momentum to the Cardano ecosystem.