In the last 7 days, ADA has plummeted by 7.43%. The market sentiment indicates more sell-off with short positions paying longs.
- ADA declines with 7.43% in & days With a strong bearish trend. Key indicators suggest a continued bearish bias as ADA attempts to create another support level.
Cardano [ADA] has been reporting a decline in the last 30 days. Over the last seven days, it has reported a 7.43% price decline. ADA was trading at $0.4074 at press time with a 24-hour volume increase of 15.32% to $213 million.
According to coinmarketcap, ADA has a market cap of $14.5b, a 1.13% increase in 24 hrs.
Source: Tradingview
AMBcrypto’s analysis showed that ADA is set to breakdown. The move below $0.406 will create another support level.
A bearish bias will persist until the structure changes or another strong support is established. Thus, the current trade shows the market has a sustained bearish bias, which will remain until a support downward emerges at around $0.356.
If a reversal occurs at $0.403, the shift will drive prices to $0.487. However, the current market trend is bearish and seems sustained to continue.
Source: Tradingview
In fact, ADA has a negative CMf of -0.15 at press time, showing increased selling pressure. Generally, when there is a negative CMF, it implies a solid bearish trend that might continue.
With a higher selling pressure, prices decrease as there are more sell-offs than buying.
ADA market sentiments
According to Coinglass, there is a reduced ADA-weighted funding rate. Generally, lower funding rates imply that shorts pay long positions, suggesting a bearish trend and sentiment.
When futures are trading at a discount to the spot, it puts downward pressure on prices.
Source: Coinglass
Equally, Santiment’s data on ADA”s total open interest in USD indicates reduced trading activity. Decreased open interest shows fewer trades in future markets, leading to thin order books.
Such a change in market sentiment leads to increased volatility in trading volumes. These changes imply a bearish trend as there’s forced liquidation.
How far can ADA fall?
Various indicators show that ADA is on a strong bearish trend. The breakdown below the local weak support level of $0.403 will cause the bearish bias to persist.
Is your portfolio green? Check out the ADA Profit Calculator
However, with a structure change or establishment of a new level, the market will experience a reversal.
In this sense, a potential reversal can push the market to $0.489 while creating a new resistance level of $0.505. However, until the structure changes, the trend will remain bearish.
Take a Survey: Chance to Win $500 USDT
Next: Polkadot drops by 44% to $6.19 – Time to buy DOT?
Source