Cardano's Price Rally Faces Potential Downside Risks

Cardano's price has recently experienced a rally of approximately 10% from its previous low. According to NS3.AI, technical indicators suggest potential downside risks, including the formation of a head-and-shoulders pattern and bearish divergence. The increased movement of coins on-chain and a higher long leverage position among derivatives traders indicate growing selling pressure. Key price levels between $0.28 and $0.25 will be crucial in determining whether the rebound can be sustained or if a further decline toward $0.21 is likely.