- ADA falls by 7.43% in & days With a strong bearish trend.
- Key indicators point to a continued bearish bias as ADA attempts to create a new support level.
Cardano [ADA] reports a decline in the past 30 days. A price drop of 7.43% was reported over the past seven days. ADA was trading at $0.4074 at the time of writing, with 24-hour volume up 15.32% to $213 million.
According to Coinmarketcap, ADA has a market capitalization of $14.5 billion, a 1.13% increase within 24 hours.
Source: Tradingview
AMBcrypto’s analysis showed that ADA is on the verge of breaking. The move below $0.406 will create a new support level.
A bearish bias will persist until the structure changes or other strong support is established. Thus, current trading shows that the market has a persistent bearish bias, which will persist until downside support emerges around $0.356.
If a reversal occurs at $0.403, the shift will drive prices towards $0.487. However, the current market trend is bearish and appears to be persistent.
Source: Tradingview
In fact, at the time of writing, ADA has a negative CMf of -0.15, indicating increased selling pressure. When there is a negative CMF, it generally implies a solid bearish trend that could continue.
With higher selling pressure, prices fall because there are more sales than buying.
ADA market sentiment
According to Coinglass, there is a reduced ADA-weighted financing rate. In general, lower funding rates imply that shorts are paying for long positions, indicating a bearish trend and sentiment.
When futures trade at a discount to the spot market, it puts downward pressure on prices.
Source: Coinglass
Santiment’s data on ADA’s total open interest in USD also indicates reduced trading activity. Reduced open interest indicates fewer trades in future markets, leading to thin order books.
Such a change in market sentiment leads to increased volatility in trading volumes. These changes imply a bearish trend as there is forced liquidation.
How Far Can ADA Fall?
Several indicators show that ADA is in a strong bearish trend. The breakdown below the local weak support level at $0.403 will ensure the bearish bias continues.
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However, with a change in structure or the setting of a new level, the market will experience a reversal.
In this sense, a potential reversal could push the market towards $0.489 while creating a new resistance level at $0.505. However, until the structure changes, the trend will remain bearish.
