Amidst this bearish market sentiment, majority of cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are experiencing significant selling pressure. Amidst this market downturn, Cardano (ADA) also appears bearish and could see a significant price drop despite whales accumulating millions of tokens.
Cardano Whales Adds 170 Million ADA Tokens
According to on-chain analytics firm Santiment, Cardano Whales, which hold over 100 million ADA tokens, 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 seen as 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 of the ascending trendline. Since August 5, 2024, ADA has taken support from this trendline multiple times, and each time it has seen an upward rally. After this recent breakout, there is a high chance that it could drop 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 timeframe. However, the Relative Strength Index (RSI) is in an oversold territory, indicating a possible price reversal.
Key Liquidation Levels of ADA
However, ADA short sellers are dominating the asset and liquidating long positions. According to on-chain analytics firm CoinGlass, the ADA exchange liquidation map indicator shows that short sellers have a huge potential to liquidate millions in long positions.
Currently, key liquidation levels are around $0.337 on the downside and $0.365 on the upside as traders are overleveraged at these levels.
Short sellers dominate ADA
If the market sentiment remains bearish and the ADA price falls to the $0.337 level, long positions worth nearly $544,150 will be liquidated. Conversely, if the sentiment changes and the price rises to the $0.365 level, short positions worth approximately $6.31 million will be liquidated.
This modest long position over the past 24 hours indicates that the bulls are exhausted and the bears are dominating the asset.
Currently, ADA is trading around the $0.342 level and the price has dropped by more than 6% over the past 24 hours. Meanwhile, the open interest has dropped by 4% over the same period, indicating lower interest and fear among traders, possibly due to a breakdown and market sentiment.
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