Cardano (ADA) Price: Bullish FAILS as Key Metric Plummets
Cardano (ADA) Price Holds, But Cracks Appear
The Cardano (ADA) price has seen a 2.9% increase in the last 24 hours, a show of strength against a largely stagnant altcoin market. However, the 7-day chart reveals a 12% dip, hinting at underlying problems.
While short-term charts suggest bullish momentum, a closer examination of on-chain data exposes vulnerabilities. A bullish pattern alone may not be enough to sustain the price, especially as crucial support metrics weaken.
Significant Outflow Drop Signals Weakening Buyer Confidence
A key indicator of buyer conviction, net outflows from ADA spot exchanges, has decreased significantly in recent days.
- Previously, daily outflows hit a peak of $40.07 million.
- As of August 21, outflows have plummeted to just $3.56 million.
This 91% reduction in net outflow, while still positive, implies waning buyer interest and a stall in momentum.
Leverage Stack Hints at Potential Long Squeeze
Data indicates a concentration of long positions for ADA, creating vulnerability. Bitget shows over $174.80 million in long leverage versus $73.56 million in short positions.
A significant cluster of leveraged positions exists between $0.83 and $0.85. If the Cardano price falls to this level, liquidations could trigger a cascade effect.
The current imbalance may lead to a long squeeze. The concentration of long positions, combined with sellers gaining strength, increases the risk of a sudden downward movement.
Key Levels to Watch for Cardano Price
The Cardano price remains within an ascending triangle pattern on the daily chart.
- The immediate breakout level is at $0.91. A successful break could lead to a run towards $1.01–$1.10.
- Crucially, the support line at $0.83 is under pressure. Breaking below this level would invalidate the bullish setup.
Reduced outflow support and an imbalance in leverage make this level increasingly vulnerable. While Cardano's price structure may appear bullish, its foundations are weakening.