Cardano price slipped 3% to $0.179 over the past 24 hours, even as broader crypto sentiment saw slight consolidation.
ADA had recovered about 20% this week following below $0.16, but sellers reappeared close to $0.18.
The broader crypto crypto increased by 1.16% to a total of 2.28 trillion, which was aided by increased risk appetite.
Bitcoin and Ethereum were hovering at around $66,000 and $1,800 respectively in the most recent market recovery.
The action was in line with a purported US-Iran structure accord to cease enmity and open the Strait of Hormuz. Lower oil prices eased inflation concerns, helping risk assets regain momentum.
Hoskinson Pushes Back Against ADA Skeptics
Charles Hoskinon also countered the argument that Cardano is becoming irrelevant. In a recent livestream, he argued that the perspective of ADA can shift rather fast once sentiment gets better.
He cited the 2020 and 2021 cycle of ADA, which rose between approximately 0.025 and almost 3. Hoskinson took this rally to propose that markets could reprice good projects in the short term.
The recent ADA rebound also occurred when another focus was on the comments by Hoskinson on the audit of Bitcoin. Those comments provoked new calls to transparency and re-evaluation within the Cardano community.
Leios Testnet Launch Could Shape ADA Momentum
Cardano investors are now watching the Leios public testnet, expected on June 23. The upgrade is designed to enhance the speed and scalability of Cardano by testing external developers.
Should the testnet be successful, traders can price in higher demand ahead of the mainnet rollout.
But network activity is poor, raising a question of whether the price will be affected immediately. The volume in the market is now a key to any lasting recovery.
ADA Traders Turn Cautious as Cardano Open Interest Falls
Cardano derivatives trading saw declining exposures of ADA traders in big contracts. There was reduced short-term participation, with trading volume declining by 13% to $675.89 million.
Open interest reduced as well by 3.54% to $376.39 million indicating less open positions. The downward trend is attributable to conservative mood following recent fluctuations.
Reduced open interest and decreased volume are common indicators of profit-taking, reduced leverage, or traders awaiting a better understanding of market direction to reenter.
ADA Price Holds Recovery Zone, Can Cardano Target $0.20 Next?
As of the reporting, the ADA price traded near $0.1775 on four-hour ADA/USDT chart.
The RSI is around 52, indicating an equal momentum following the cooling off of its recent overbought attempt.
The MACD also indicates declining momentum, and the histogram became a little negative following the recovery stage.
The immediate resistance area of short-term direction in the market is now the level of $0.18.
A continuous candle over $0.18 may reinforce the enthusiasm to buy and reveal the $0.19 objective. With further improvement of momentum, ADA may retest $0.20, the primary upside target as per future Cardano outlook.
Nonetheless, the inability to reclaim $0.18 might keep the token in the weak downside. In that instance, traders can initially monitor $0.17 as the closest pullback objective.
Further adjustment may see ADA revert to the ADA to around $0.16, where the buyers have previously defended the price action.