- With a strong bearish sentiment, ADA could drop by 15% to reach the $0.71 level.
- On-chain metrics revealed that the exchanges have witnessed an outflow of $30 million in ADA tokens.
Amid the bearish market sentiment, Cardano [ADA] is poised for a notable price decline due to bearish confirmation on its daily timeframe.
Additionally, the prevailing market sentiment and traders’ bearish activity have further strengthened this negative outlook.
Traders heavily shorting ADA
According to on-chain analytics firm Coinglass, traders are potentially taking advantage of the current market sentiment by strongly betting on the short side.
Data reveals that traders holding long positions are over-leveraged at $0.85, with $4.10 million worth of long positions.
Meanwhile, short sellers seem to be dominating, being over-leveraged at the $0.912 and $0.926 levels, currently holding $16.77 million worth of short positions.
Source: Coinglass
This on-chain data shows that short sellers are three times stronger than traders holding long positions. This indicates a bearish signal.
Investors’ bullish view
Besides traders, long-term holders and investors see the current market sentiment as an opportunity, to accumulate ADA tokens.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of $30 million ADA tokens in the past 48 hours, indicating potential accumulation.
Some experts see this outflow as an ideal long-term buying opportunity.
Source: Coinglass
When combining these on-chain metrics, it appears that ADA is bearish in the short term but remains bullish over the long term, which explains investors’ potential accumulation.
Cardano’s technical analysis and upcoming levels
According to AMBCrypto’s technical analysis, ADA appears bearish as it has successfully retested the ascending trendline breakdown level and has begun moving in a downtrend.
Source: TradingView
Based on recent price action and historical momentum, ADA could drop by 15% to reach $0.71 in the coming days.
However, the overall market appears to be under significant pressure due to traders’ strong bearish outlook. This could further strengthen ADA’s bearish trend.
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