- ADA’s Long/Short Ratio was at 0.93, indicating bearish sentiment among traders.
A prominent crypto expert believes that ADA could face a short-term price correction.
As a seasoned analyst with years of experience navigating the tumultuous waters of the cryptocurrency market, I’ve seen bull runs and bear markets come and go. Based on the current data and trends, it seems we are facing another downturn, particularly for Cardano [ADA].
In the midst of a price adjustment sweeping through the crypto sector, I find myself bracing for a potential substantial drop in Cardano‘s value, given the formation of a bearish pattern on its daily chart.
Similarly to ADA, significant cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have undergone price adjustments as well.
Cardano key levels
Based on AMBCrypto’s technical assessment, Cardano (ADA) showed signs of being bearish when it created a bearish pin bar candlestick, reaching the resistance level set by the downward trendline at the current moment.
Forming this type of candlestick configuration on the daily graph is often seen as a bearish indicator, and it’s a factor that many traders and investors consider when planning to open short positions.
Starting from April 2024, the ADA token has encountered this resistance level on numerous occasions, only to be met with selling activity each time. Yet, in this instance, the cryptocurrency community anticipates another wave of selling pressure and potential price drop.
If ADA ends its daily chart at less than $0.3912, it’s likely that we might see a drop of approximately 20%, potentially taking the price down to around $0.31 in the near future.
But the pessimistic perspective stays valid only if Cardano (ADA) remains under $0.42. If it manages to surpass this price point, the bearish assumption could potentially be invalidated.
ADA is bearish, on-chain
The unfavorable opinion towards ADA was reinforced by various on-chain indicators. As reported by the on-chain analysis company Coinglass, at the current moment, the Long/Short Ratio for ADA stood at 0.93, suggesting that traders are leaning more towards selling rather than buying, which is a bearish sign.
Furthermore, there’s been no change in the Futures Open Interest over the past day, indicating a lack of decisive trading activity.
At press time, 51.63% of top traders held short positions, while 48.37% held long positions.
Read Cardano’s [ADA] Price Prediction 2024–2025
After bringing together all the information, it seems evident that bears have taken control over the asset, potentially causing a substantial drop in its price within the next few days.
Currently, at this moment, ADA is hovering around $0.385 following a 1.4% drop in value over the last 24 hours. The trading activity has decreased by about 35%, suggesting fewer traders are involved as the overall market mood remains bearish.
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2024-09-30 11:35