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Published:
- ADA’s Long/Short ratio was 0.93, indicating bearish sentiment among traders.
- A prominent crypto expert believes that ADA could face a price correction in the near term.
Amid an ongoing price correction in the cryptocurrency market, Cardano (ADA) appeared poised for a significant price decline, with its daily chart forming a downtrend.
Alongside ADA, other major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have also seen price corrections.
Cardano Key Levels
According to AMBCrypto technical analysis, ADA appeared bearish as it formed a bearish hairpin candle, touching descending trendline resistance at press time.
The formation of such a candlestick pattern on the daily chart is considered a bearish signal, which traders and investors take into account when creating short positions.
Source: TradingView
Since April 2024, ADA has touched this resistance level several times, and each time it has faced selling pressure. However, this time the crypto community is expecting similar selling pressure and price decline.
Based on recent price action, if ADA closes a daily candle below the $0.3912 level, there is a high chance that it will decline by 20% to reach the $0.31 level in the next few days.
However, this bearish thesis will only hold as long as ADA trades below the $0.42 level. If it exceeds this level, the bearish outlook could fail.
ADA is bearish, on-chain
This negative sentiment for ADA was further supported by on-chain metrics. According to on-chain analytics firm Coinglass, ADA’s long-to-short ratio was 0.93 at press time, indicating bearish sentiment among traders.
Additionally, its futures open interest remained unchanged over the past 24 hours, reflecting neutral interest among traders.
Source: Coinglass
At press time, 51.63% of top traders held short positions, while 48.37% held long positions.
Read Cardano (ADA) Price Prediction 2024-2025
Combining all of this data, it appears that bears are currently dominating the asset, which could lead to a significant price decline in the coming days.
At the time of writing, ADA was trading near $0.385 after a 1.4% price drop over the past 24 hours. Its trading volume declined by 35%, indicating lower trader participation amid bearish market sentiment.
