Cardano (ADA) Set For $0.70, On-Chain Insights
The overall cryptocurrency market appears to be bleeding. In the midst of this market downturn,, ADA, the native token of the Cardano blockchain, is poised for a notable price decline. This bearish speculation for ADA is based on recent price action, overall market sentiment, and traders’ strong bearish outlook.
Cardano (ADA) Technical Analysis and Key Levels
According to CoinPedia’s technical analysis, ADA has confirmed its bearish trend by retesting the breakdown of its ascending trendline. However, the altcoin is currently finding minor support at the $0.90 level. Based on recent price action and historical momentum, if ADA closes a daily candle below $0.90, there is a strong possibility it could decline by 15% to reach $0.70 in the future.
Despite this bearish outlook, the altcoin is still trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset remains in an uptrend.
Rising Bets on Short Positions
Following this bearish price action, traders are strongly betting on the downside, as revealed by the on-chain analytics firm CoinGlass.
According to on-chain data, short-sellers are currently dominating the asset and could liquidate bullish long positions.
The data shows that the $0.95 level acts as strong resistance, with short-sellers being over-leveraged at this level, holding $9.65 million worth of short positions. Meanwhile, the $0.88 level serves as strong support, where bulls are over-leveraged, holding $6.30 million worth of long positions.
These statistics show that short-sellers are currently controlling the asset and have the potential to drive ADA’s price.
When combining traders’ interest with technical analysis and price action, it appears that ADA could decline to the $0.70 level in the coming days.
Current Price Momentum
ADA is currently trading near $0.913 and has experienced a price drop of over 3.50% in the past 24 hours. However, during the same period, due to bearish market sentiment, traders’ and investors’ participation has declined by 22% compared to the previous day.
