Cardano risks 20% drop amid bearish market signals
– Cardano (ADA) could drop by 20% in the coming days if the price closes below 0.3912 USD.
– A bearish chart pattern suggests a potential downward movement.
– ADA’s long/short ratio is at 0.93, indicating prevailing negative market sentiment.
– A breakout above 0.42 USD could, however, halt the downtrend.
Cardano Facing Potential Price Decline
Cardano (ADA) may be facing a significant price drop as a bearish pattern has formed on the daily chart. This pattern, known as a “bearish pin-bar candle,” often signals an impending downward movement. Traders and investors take such signals into account to adjust their positions accordingly.
Key Price Levels for ADA
According to technical analysis, ADA could come under pressure if the price falls below the 0.3912 USD mark. Should this occur, a 20% drop to around 0.31 USD is expected. However, this bearish forecast remains valid only as long as the price stays below 0.42 USD. If ADA breaks through this level, the outlook could change, potentially halting the downtrend.
On-Chain Data Supports Bearish Forecast
In addition to chart patterns, on-chain data also points to negative market sentiment. According to the analysis platform Coinglass, ADA’s long/short ratio stands at 0.93, indicating that more traders are betting on falling prices. Open interest, which reflects the number of open positions in the futures market, remained unchanged over the past 24 hours, suggesting a neutral stance by many traders.
At the time of analysis, 51.63% of top traders were holding short positions, while 48.37% were holding long positions. This distribution shows that the majority of traders are betting on falling prices, which could further increase the pressure on ADA.
Current Market Conditions
At the time of writing, ADA was trading at around 0.385 USD, having fallen by 1.4% in the past 24 hours. Trading volume dropped by 35%, indicating decreased trader interest. This could be another sign of the prevailing bearish market sentiment.
Our Assessment
The data suggests that Cardano could face pressure in the coming days. Both technical and on-chain indicators point to a potential downward movement. Traders should keep an eye on the 0.3912 USD mark, as a close below it could trigger further price declines. However, a breakout above 0.42 USD could negate the bearish scenario and steer ADA back in a positive direction.
| Symbol | ADA |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
|
| Cons |
|
| Price | $1.18 |
| 24h % | -1.73 % |
| 7d % | 26.88 % |
| 30d % | 255.76 % |
| 60d % | 233.14 % |
| 1y % | 201.98 % |
| Market Cap | $42,377,763,038.00 |
| Max. Supply | 45,000,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency