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Cardano (ADA) Price Dip: Short Sellers vs. Long-Term Holders

Cardano (ADA) Price Dip: Short Sellers vs. Long-Term Holders

Cardano News

The cryptocurrency market is showing mixed signals for Cardano (ADA). While a bearish sentiment suggests a potential 15% drop to $0.71, on-chain data reveals a counter-narrative.

Bearish Pressure Mounts

Technical analysis indicates a bearish trend for ADA, following a retest of the ascending trendline breakdown. This, coupled with a strong bearish sentiment among traders, is fueling the predicted price decline. Coinglass data highlights that short positions are significantly outweighing long positions, with $16.77 million in short positions compared to $4.10 million in long positions. This disparity signals considerable bearish pressure in the short term.

  • Short sellers dominate: Short positions are three times larger than long positions, indicating a strong bearish bet.
  • ADA exchange outflow: Despite bearish sentiment, $30 million in ADA tokens flowed out of exchanges in the past 48 hours. This suggests accumulation by long-term investors.

Long-Term Holders Accumulate

While short-term traders are betting against ADA, long-term investors view the current price action as a buying opportunity. The significant outflow of ADA from exchanges further supports this accumulation trend. Some experts believe this presents a compelling long-term investment opportunity.

Technical Analysis and Price Predictions

Our technical analysis, based on recent price action and historical trends, suggests a potential 15% drop to $0.71. However, the longer-term outlook remains unclear. This situation underscores the importance of careful risk management and understanding market dynamics before making investment decisions.

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