In this bearish market sentiment, the majority of cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are experiencing significant selling pressure. Amid this market downturn, Cardano (ADA) also appears bearish and may face a substantial price decline despite the accumulation of millions of tokens by whales.
Cardano Whales Added 170 Million ADA Tokens
According to the on-chain analytic firm Santiment, Cardano Whales holding over 100 million ADA tokens have added over 170 million tokens between August 27 and August 30, 2024. This massive accumulation ahead of Cardano’s highly anticipated Chang Hard Fork update was initially considered a bullish outlook for ADA.
Cardano Price Prediction
However, due to the bearish market sentiment on August 30, 2024, ADA has experienced a crucial breakout down of the ascending trendline. Since August 5, 2024, ADA has taken multiple support of this trendline, and each time it has seen an upside rally. Following this recent breakdown, there is a high possibility it could fall by 10% to the $0.305 level.
Currently, ADA is in a downtrend as it is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. However, its Relative Strength Index (RSI) is in an oversold area indicating a potential price reversal.
ADA’s Key Liquidation Levels
However, ADA short sellers are dominating the asset and liquidating long positions. According to the on-chain analytic firm CoinGlass, the ADA exchange liquidation map indicator signals short sellers have huge potential to liquidate millions worth of long positions.
Currently, the major liquidation levels are near $0.337 on the lower side and $0.365 level on the upper side, as traders have been over-leveraged at these levels.
Short Sellers Dominating ADA
If the market sentiment remains bearish and ADA price falls to the $0.337 level, nearly $544,150 worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price rises to the $0.365 level, approximately $6.31 million short positions will be liquidated.
This modest long position in the last 24 hours indicates bulls are exhausted and bears are dominating the asset.
Currently, ADA is trading near the $0.342 level and has experienced a price drop of over 6% in the last 24 hours. Meanwhile, its open interest has dropped by 4% during the same period, indicating lower interest and fear among traders potentially due to breakdown and market sentiment.
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