- Cardano’s price struggles at $0.734 resistance, showing bearish sentiment.
- Rising short bets and negative CVD data signal further price declines for ADA.
- Cardano’s long-to-short ratio at 0.81 indicates a bearish outlook from traders.
Cardano (ADA) has faced a setback, with its price slipping below the $0.734 resistance level after several attempts to break through it. This rejection has shifted the market’s sentiment, with on-chain and derivatives data pointing toward a bearish outlook for ADA. Currently, ADA trades at around $0.715, signaling a deeper correction could be on the horizon. Bears are now eyeing the $0.646 support zone as the next target for price action.
On-Chain Data and Derivatives Show Bearish Sentiment
On-chain metrics show a negative trend for Cardano. The Spot Taker CVD (Cumulative Volume Delta) is currently negative, indicating a shift toward the Taker Sell Dominant Phase.Â
This means more sell orders are being executed compared to buy orders, suggesting increasing bearish pressure on the asset. The Spot Taker CVD metric has been declining since early October, further supporting the argument for a potential price correction.
On the derivatives side, the ADA long-to-short ratio sits at 0.81, its lowest value in a month. This indicates more traders are betting on a decline in ADA’s price rather than a rise. This bearish sentiment aligns with the price’s struggle to break above the $0.734 resistance, making a continued downward move more likely.
Cardano Faces a Potential Deeper Correction
Cardano’s recent price action suggests that it may undergo a deeper correction. After breaking below an ascending trendline in mid-October, ADA saw a sharp 22% drop, followed by a 15% recovery.
However, this recovery faced resistance at the $0.734 level, and ADA has since turned downward. If the price continues to decline, the $0.646 support level is the next key target. A failure to hold this level could lead to a more significant drop, challenging the broader bullish structure.
The Relative Strength Index (RSI) on the daily chart reads at 40, which is below the neutral 50 mark, confirming that the bears are currently in control. However, if ADA manages to break and hold above $0.734, it could signal a potential reversal, with targets at the 200-day Exponential Moving Average (EMA) around $0.771.
Cardano’s price remains uncertain in the short term, with key resistance levels keeping the bulls at bay. Until a decisive breakout occurs, ADA could see further consolidation or correction toward lower support levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
