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- ADA limited itself to a compact trading range because buyers could not gather.
- Shorts appeared to increase the selling pressure with a large number of open contracts.
Cardanos [ADA] Declining trading volume kept the price action close to the $0.239 support level. A recent price report highlighted the tendency of market participants to book their gains early after a recovery from the support level.
Here is ADA’s market cap in BTC terms
ADA’s rapid gains and bearish market structure have limited the altcoin’s ability to post sustainable gains. With Bitcoin [BTC] If we drop back to the $26,000 price level, ADA sellers could look to reverse the support level in the near term.
Low reach could lead to selling pressure
Source: ADA/USDT on Trading View
Between August 17 and September 24, ADA traded a compact range ($0.238 to $0.28). Despite buyers bouncing off the $0.239 support level, the inability to move above the lower low ($0.28) has suppressed the bullish rally.
At the time of writing, the ADA was once again near the lows of the range, with indications that the bears were heavily favored. On Balance Volume (OBV) continued to decline, while the Relative Strength Index (RSI) remained below neutral 50. Both indicated a lack of bullish momentum and buying pressure.
If the bears reverse the range low to resistance, the short-term target is $0.22, which was briefly reached on June 10. Otherwise, bulls could hold support, although this would depend on a good increase in volume for ADA.
Read Cardanos [ADA] Price forecast 2023-24
Speculators increased their short positions in anticipation of a range breakout
Source: Coinglass
The trade long/short ratio facts revealed the pessimistic outlook for futures market traders. The 12-hour time frame showed that shorts held a 52.61% share of open contracts.
This translated into a difference of $4.44 million between short and long positions. Moreover, it signaled a new wave of selling pressure, which could see the ADA drop to $0.22.