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- The Long/Short ratio of ADA was 0.93, indicating a bearish mood among traders.
- One prominent crypto-expert believes that ADA’s price could be subject to a correction in the short term.
Despite a continuing price correction on the crypto market. Cardano [ADA] The daily chart of the stock showed a pattern that was bearish.
There are many other important cryptocurrencies that you can use alongside ADA. Bitcoin [BTC], Ethereum [ETH]” Solana [SOL] Price corrections have also been experienced.
Cardano key levels
AMBCrypto’s technical analysis showed that ADA was bearish, as the candle formed a pin-bar bearish, and touched the resistance of the descending trendline.
When traders or investors are building short positions, they take into account the formation of a pattern like this on the chart.
TradingView
ADA reached this resistance level several times since April 2024. Each time, it was met with selling pressure. This time around, however, the crypto-community expects similar pressure to sell and a price drop.
Based on recent price movements, if ADA opens a candle daily below $0.3912, then there’s a good chance it will fall by at least 20% in order to reach $0.31 within the next couple of days.
This bearish hypothesis will hold only as long as ADA trades below $0.42. The bearish outlook could fail if it breaks through this level.
On-chain, ADA bearish
The on-chain metrics reaffirmed this bearish sentiment. Coinglass is an on-chain analytical firm. According to Coinglass, ADA’s long/short ratio at the time of publication was 0.93, indicating a bullish sentiment.
Its Futures Open Interest has also remained the same in the past 24 hours. This reflects neutral trading interest.
Coinglass
As of press time, 51.63 percent of the top traders had short positions while 48.37% were long.
You can read more about it here Cardano’s [ADA] Price Prediction 2024–2025
It appears, when combining these data, that bears dominate this asset at the moment, and that may result in a price decrease of significant proportions over the coming weeks.
ADA’s price was $0.385 at the time this article was written, after a 1.4% decline in 24 hours. The trading volume of ADA fell by 35%. This indicates a lower level of participation among traders in a bearish market.
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Source: ambcrypto.com
