- ADA’s traders had a leverage of $0.634 at the low end and $0.708 at the high.
- The exchanges’ on-chain statistics revealed that they had seen an outflow worth over $8,000,000 in ADA tokens.
Cardano [ADA] is garnering attention from crypto enthusiasts due to its significant price drop in the past 24 hours.
In a dramatic 13% drop, ADA reached a critical level, where the participation of traders and investors has soared. This has led to a noticeable increase in trading volumes.
ADA is currently experiencing a price increase.
As of the press release, ADA’s price was around $0.665. The trading volume of ADA has surged by 90 percent in the last 24 hour. The spike in trading volumes does not indicate an increase in price.
Such increases usually occur when an instrument breaks or falls out of a pattern. Investors and traders are prompted to liquidate open positions when volatility is high.
Cardano price action and upcoming level
AMBCrypto’s analysis shows that ADA is forming a double bottom pattern with a bullish bias on the daily chart. The asset has been pushed to the crucial $0.65 support level by the recent price decline.
The price has reversed at this level in the past, which further reinforces this bullish outlook.
TradingView
ADA’s technical indicators also showed a divergence in favor of the bulls, signalling a significant potential for upside.
If ADA continues to hold above the level of $0.65 in terms of historical price movement, then there’s a good chance that it will soar 25% higher, reaching $0.85.
If ADA falls below $0.65 it may drop 30%, to reach $0.45.
ADA outflows of 8 million dollars
Coinglass reports that despite the constant price drops, the long-term holders are still accumulating ADA tokens and watching the market.
According to data collected from the Spot Inflows/Outflows, exchanges saw a loss of over 8 million dollars worth of ADA Tokens within 24 hours.
Coinglass
Exchange outflows can indicate a potential accumulation in the market, which could create further buying pressure.
ADA traders make $17 Million on short side
Coinglass, a firm that provides on-chain analysis, reports that intraday traders are betting against the market and following its current sentiment.
Short positions are dominating at the moment, and long traders appear to have exhausted themselves.
The data shows that traders are over-leveraged when they reach these levels.
Coinglass
If the market remains stable and falls below $0.634, then nearly $3.08million worth of positions long will be liquidated.
If sentiment changes and the price rises to $0.708, approximately $17.30 millions worth of short position will be liquidated.
The on-chain metric shows that traders who are short ADA still do not believe the price will recover anytime soon. It is possible that this belief was the cause of the $17.30 Million worth of short positions.
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Source: ambcrypto.com
