"ADA Faces 15% Drop as Short-Sellers Dominate"
Chandan Gupta, a seasoned crypto analyst and news writer at CoinPedia, specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Gupta simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space.
The overall cryptocurrency market has been experiencing a downturn, with Cardano (ADA), the native token of the Cardano blockchain, poised for a notable price decline. This bearish speculation for ADA is based on recent price action, overall market sentiment, and traders' strong bearish outlook.
According to CoinPedia's technical analysis, ADA has confirmed its bearish trend by retesting the breakdown of its ascending trendline. However, the altcoin is currently finding minor support at the $0.90 level. Based on recent price action and historical momentum, if ADA closes a daily candle below $0.90, there is a strong possibility it could decline by 15% to reach $0.70 in the future.
Despite this bearish outlook, the altcoin is still trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset remains in an uptrend.
Following this bearish price action, traders are strongly betting on the downside, as revealed by the on-chain analytics firm CoinGlass. According to on-chain data, short-sellers are currently dominating the asset and could liquidate bullish long positions. The data shows that the $0.95 level acts as strong resistance, with short-sellers being over-leveraged at this level, holding $9.65 million worth of short positions. Meanwhile, the $0.88 level serves as strong support, where bulls are over-leveraged, holding $6.30 million worth of long positions.
These statistics show that short-sellers are currently controlling the asset and have the potential to drive ADA's price. When combining traders' interest with technical analysis and price action, it appears that ADA could decline to the $0.70 level in the coming days.
ADA is currently trading near $0.913 and has experienced a price drop of over