Cardano (ADA) is facing a potential decline in its price amidst a bearish trend in the overall cryptocurrency market. Traders and market sentiment are indicating a strong bearish outlook for ADA.
According to technical analysis by CoinPedia, ADA has already confirmed its bearish trend by breaking its ascending trendline. Currently, it is finding some support at the $0.90 level. However, if ADA closes a daily candle below $0.90, it could potentially decline by 15% and reach $0.70 in the future.
Despite this bearish outlook, ADA is still trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, suggesting that the asset is still in an uptrend.
On-chain analytics firm CoinGlass reveals that short-sellers are dominating ADA, indicating a strong downside bet from traders. Short-sellers hold $9.65 million worth of short positions at the $0.95 resistance level. On the other hand, bulls are over-leveraged at the $0.88 support level, holding $6.30 million worth of long positions.
These statistics show that short-sellers currently control ADA and have the potential to drive its price. Combining this with technical analysis and price action, it is likely that ADA could decline to the $0.70 level in the coming days.
Currently, ADA is trading around $0.913, experiencing a price drop of over 3.50% in the past 24 hours. However, due to the bearish market sentiment, traders’ and investors’ participation has declined by 22% compared to the previous day.
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