- With decreasing volatility, and large sell-offs, ADA’s price could decrease to $0.42.
Long liquidations exceeded shorts, and this could fuel a bearish bias for the token.
As an analyst with experience in cryptocurrency market analysis, I believe that Cardano’s [ADA] current trend could lead to a significant decrease in its price. The large sell-offs by addresses holding large quantities of ADA have increased, and this trend is often indicative of a bearish sentiment towards the token.
Our analysis by AMBCrypto indicates that holders of large amounts of Cardano (ADA) have been offloading some of their tokens. Specifically, the number of wallets containing between one million and ten million ADA coins has seen a reduction as of current market updates.
Additionally, according to Santiment’s analysis, the selling activity from addresses holding between 100 million and 1 billion tokens has remained consistent since June 1st. This trend signifies that major holders have been becoming less confident in the token, as indicated by their sales.
It’s a tight season for ADA
In the majority of situations, this situation results in a drop in price. Therefore, it’s possible that the price of Cardano’s native token, ADA, could be set to fall. At present, its value is recorded at $0.46. Over the last week, there has been a 4.65% rise in its price.
If these large market participants persist in releasing more ADA tokens, their supply may prevent further price growth. In addition, AMBCrypto analyzed the market fluctuations regarding ADA.
As a crypto investor, I’ve observed that the one-day price fluctuations have decreased significantly compared to what they were on the 5th of June, according to the latest on-chain data. Volatility refers to the speed at which market prices change, so this decrease indicates a more stable market for now.
With a low level of volatility, the price of Cardano’s ADA token may remain relatively stable. However, if volatility increases significantly, the price could see substantial fluctuations. If buying pressure lessens, ADA might trade within the range of $0.44 and $0.46.
An increase in selling activities might cause the price of ADA to decrease. If such an event occurs, the token could potentially drop down to a price of $0.42 – a value it previously reached on the 14th of May.
As a curious crypto investor, I’d like to delve deeper into Cardano’s price action. To shed some light on potential price movements, let me explain what I mean by “liquidation levels.” These are significant price thresholds where substantial sell-offs might take place due to automated stop-loss orders being triggered.
Can bulls sustain the hike?
When a trader’s account margin level falls below the required amount to maintain an open position, the exchange forcibly closes that position in a process called liquidation.
As a crypto investor, I’ve noticed that at the current moment, there is substantial buying and selling activity for ADA around the price range of $0.46 to $0.47. This liquidity suggests that ADA’s value could experience some volatility and potentially fluctuate within this area in the upcoming hours.
The Cumulative Liquidation Levels Delta (CLLD) signaled a potential for further decline in the token’s price based on the cumulative difference between the amount of long positions being liquidated and short positions being liquidated.
As a researcher studying market trends, I would interpret a positive difference as indicative of an increased number of long positions being liquidated. Conversely, a negative difference implies a higher volume of long liquidations in the market.
In addition to affecting the total and difference, the CLLD (Compression Line of Last Deals) influences pricing. A negative reading from the CLLD can act as a bullish indicator since the price may bounce back strongly after reaching its bottom.
Read Cardano’s [ADA] Price Prediction 2024-2025
As of the latest news update, ADA‘s CLLD indicator showed positive results due to most of the recent dip being regained. It is possible that the ADA token had reached a temporary peak at this point.
As such, the price might slip below $0.45.
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2024-06-08 01:11