Can Cardano recover as ADA reclaims $0.25 after recent weakness?

The coin has underperformed over the past three weeks and continues to struggle to hold key support levels amid declining retail demand.

The derivatives market is seeing an improved risk sentiment, indicating that retail traders might be willing to step in.

Futures Open Interest slightly recovers

$ADA is up 1% in the last 24 hours thanks to a slight increase in retail demand.

According to CoinGlass, Cardano’s futures Open Interest (OI) now stands at $544 million, up from the $529 million recorded the previous day.

However, the OI is still behind the $612 million recorded on May 10.

The declining OI over the past two weeks suggests a fading retail interest and aligns with $ADA’s price dip from $0.2900 to its current $0.2513.

Persistent declines in OI suggest that investors lack confidence in $ADA’s ability to sustain short to medium-term gains and are therefore unwilling to open new positions.

The Cardano development team is also seeking to raise $6 million to integrate certain protocols into the blockchain.

The proposal, Cardano Critical Integrations V2, is asking the community to approve 23 million $ADA to enable the enhanced integration with Circle’s USDC stablecoin, LayerZero (ZRO), Pyth Network (PYTH), and native Fireblocks support.

Charles Hoskinson, the co-founder of Cardano, has urged the community members to support the proposal.

He noted that the proposal is key to keeping researchers and scientists on the network.

Cardano price analysis: $ADA remains weak

The $ADA/USD 4-hour chart is still bearish despite adding 1% to its value in the last 24 hours.

The bearish trend comes as $ADA is trading 0-day Exponential Moving Average (EMA) at $0.2585.

The momentum indicators remain bearish but could improve thanks to rising retail demand.

The Relative Strength Index (RSI) hovers around 48, approaching the 50 neutral level, indicating a fading bearish trend.

The Moving Average Convergence Divergence (MACD) histogram remains in the negative territory, hinting at persistent selling interest on rallies.

If the market recovery persists, the buyers would encounter immediate resistance just around the $0.2585 region, coinciding with the 50-day EMA.

However, a daily candle close above this level would allow the buyers to push $ADA’s price higher towards the 4-hour Inducement Liquidity at $0.2795.

Higher resistance levels at $0.2855 and $0.3567 continue to present a challenge in the near and medium term.

On the downside, the buyers have been holding the support at $0.2483 in recent days. A sustained decline below this support level would expose the demand at $0.2400.

If the daily candle closes below $0.2400, $ADA could record further losses and likely retest the $0.2200 support for the first time since February.

While the retail demand has improved in the last two days, the broader bearish structure continues to limit $ADA’s recovery attempts.