Cardano (ADA) Could Decline by 15% to Reach $0.70 If It Closes a Daily Candle Below the $0.90 Level

Short-seller believes that ADA won’t cross the $0.95 level. The overall cryptocurrency market appears to be bleeding.

Cryptocurrency traders are bracing themselves for a potential decline in Cardano (ADA) price, with technical analysis suggesting a 15% drop if the altcoin closes below a crucial level.

ADA’s recent price action, combined with the overall market sentiment and traders' strong bearish outlook, has set the stage for this bearish speculation.

Cardano (ADA) Technical Analysis and Key Levels

CoinPedia's technical analysis reveals that ADA has confirmed its bearish trend by retesting the breakdown of its ascending trendline. Nevertheless, the altcoin is currently finding minor support at the $0.90 level.

Considering recent price action and historical momentum, if ADA closes a daily candle below $0.90, there is a high probability that the coin could witness a 15% decline, potentially reaching the $0.70 level in the upcoming sessions.

Despite this bearish outlook, the altcoin is still trading above the 200 Exponential Moving Average (EMA) on the dailyの時間枠, indicating that the asset's uptrend is yet to be invalidated.

Rising Bets on Short Positions

Following this bearish price action, traders are betting heavily on the downside, as highlighted by 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 in short positions. On the other hand, the $0.88 level serves as strong support, where bulls are over-leveraged, holding $6.30 million in long positions.

These statistics indicate that short-sellers are currently driving ADA's price action.

Combining traders' interest with technical analysis and price momentum, it appears that ADA could be set to decline towards the $0.70 level in the coming days.

Current Price Momentum

ADA's current price is around $0.913, showing a price decrease of over 3.50% in the past 24 hours. However, traders' and investors' participation has dropped by 22% during the same period due to bearish market sentiment.