Cardano’s recent stagnation in price movements has led to a surge in demand for short positions among futures traders.
As the coin’s momentum weakens, more and more traders are betting on the price decline, indicating negative sentiment towards ADA.
Cardano Traders Bet on Price Drop
According to Coinglass, ADA’s Long/Short Ratio is at a monthly low of 0.82, indicating high demand for short positions.
The Long/Short Ratio of an asset compares the number of long positions (buy) with short positions (sell) in the market. As with ADA, when the ratio is below one, more traders are betting on the downside (shorting) than on the upside. If short sellers continue to prevail, this could increase downward pressure on the asset.
Additionally, ADA Counterweight Sentiment remains negative, currently at -0.074, further reinforcing the negative outlook for this altcoin.
Counterweight Sentiment measures overall market trends by analyzing the volume and tone of social media mentions. A negative value signifies increased skepticism among investors, often leading to a decrease in trading activity and downward pressure on the asset’s price.
Notably, ADA Whale has seen a decrease in trading activity over the past week, with net flows to major holders of the coin dropping 90.29%, according to data from IntoTheBlock.
Large Holders, defined as addresses holding more than 0.1% of an asset’s total circulating supply, play an important role in market fluctuations. The decline in their flows points to a decrease in buying activity, adding downward pressure on the ADA price.
ADA Price Prediction: Rebound To 1 USD Or Fall To 0.80 USD?
Currently, ADA is trading at $0.98, hovering just above the $0.90 support level. If negative pressure increases, the price could test this support level. If it fails to hold at $0.90, ADA could fall further, potentially to $0.80.
Conversely, if buying activity increases, ADA price could stabilize above the $1 mark.