- If the bearish sentiment is strong, ADA might drop as much as 15% in order to hit $0.71.
- According to on-chain metrics, the exchanges reported a $30 million outflow in ADA tokens.
The market is currently experiencing a bearish sentiment. Cardano [ADA] Due to the bearish confirmation in its daily timeframe, is set for a significant price drop.
This negative outlook has been further reinforced by the current bearish market sentiment, as well as traders’ activity.
Traders are heavily shorting ADA
Coinglass’ on-chain analysis firm claims that traders could be taking advantage of current market sentiments by betting heavily on the short end.
According to data, traders with long positions overleveraged themselves at $0.85 and held $4.10 Million worth of long position.
Short sellers are dominating the market, with positions currently worth $16.77 millions, and they have leveraged themselves at $0.912 levels or $0.926.
Coinglass
On-chain data indicates that short sellers have three times the strength of traders who hold long positions. It is clearly a bearish sign.
The bullish outlook of investors
Long-term investors and holders of ADA tokens also view the current market conditions as an opportunity to acquire ADA.
According to data from the Spot Inflow/Outflow, exchanges saw a $30 million outflow in ADA tokens over the last 48 hours.
Some analysts see the outflow of funds as a long-term opportunity to buy.
Coinglass
It appears, when combining the on-chain metrics that ADA has a bearish outlook in the near term, but is bullish at the longer term. This explains the accumulation potential of investors.
Cardano’s technical analysis of the next levels
AMBCrypto analyzed ADA’s technical chart and found that it was bearish. ADA has retested successfully the level of ascending breakdown trendline, as well as begun to move in a downward direction.
TradingView
Based on historical price momentum and recent price movement, ADA may drop 15% in the next few days to $0.71.
Despite the strong negative outlook of traders, it appears that there is significant market pressure. It could also strengthen ADA’s current bearish trends.
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Source: ambcrypto.com
